Market Newsdesk

August 7, 2025 6:28 am

Lilly’s oral GLP-1, orforglipron, delivers weight loss of up to an average of 27.3 lbs in first of two pivotal Phase 3 trials in adults with obesity

PR Newswire

In ATTAIN-1, the investigational once-daily oral pill showed significant efficacy, and a safety and tolerability profile consistent with injectable GLP-1 therapies at 72 weeks

Orforglipron achieved the primary and all key secondary endpoints, including demonstrating improvements in a number of cardiovascular risk factors

With these results, Lilly is on track to submit orforglipron to global regulatory agencies by year-end and is making substantial investments to meet anticipated demand at launch

INDIANAPOLIS
, Aug. 7, 2025 /PRNewswire/ — Eli Lilly and Company (NYSE: LLY) today announced positive topline results from the Phase 3 ATTAIN-1 trial, evaluating orforglipron, an investigational oral glucagon-like peptide-1 (GLP-1) receptor agonist, in 3,127 adults with obesity, or overweight with a weight-related medical problem and without diabetes. At 72 weeks, all three doses of orforglipron, met the primary endpoint and all key secondary endpoints compared to placebo, delivering clinically meaningful weight loss as an adjunct to a healthy diet and physical activity. For the primary endpoint, orforglipron 36 mg, taken once per day without food and water restrictions, lowered weight by an average of 12.4% (27.3 lbs) compared to 0.9% (2.2 lbs) with placebo using the efficacy estimand.¹

“Obesity is one of the most pressing global health challenges of our time, driving global chronic disease burden and impacting more than one billion people worldwide,” said Kenneth Custer, Ph.D., executive vice president and president of Lilly Cardiometabolic Health. “With orforglipron, we’re working to transform obesity care by introducing a potential once-daily oral therapy that could support early intervention and long-term disease management, while offering a convenient alternative to injectable treatments. With these positive data in hand, we are now planning to submit orforglipron for regulatory review by year-end and are prepared for a global launch to address this urgent public health need.”

In the ATTAIN-1 trial, orforglipron met the primary endpoint of superior body weight reduction compared to placebo. Participants taking the highest dose of orforglipron lost an average of 27.3 lbs (12.4%) at 72 weeks using the efficacy estimand. In a key secondary endpoint, 59.6% of participants taking the highest dose of orforglipron lost at least 10% of their body weight, while 39.6% lost at least 15% of their body weight. In addition to achieving significant weight loss, orforglipron was also associated with reductions in known markers of cardiovascular risk, including non-HDL cholesterol, triglycerides and systolic blood pressure in pooled analyses across all doses. In a pre-specified exploratory analysis, the highest dose of orforglipron reduced high-sensitivity C-reactive protein (hsCRP) levels by 47.7%.

Efficacy Estimand Results
	Orforglipron 6 mg	Orforglipron 12 mg	Orforglipron 36 mg	Placebo
Primary Endpoint
Mean percent change in body weight from avg. baseline of 103.2 kg (227.5 lbs) and 37.0 BMIⁱ	-7.8% (-8.0 kg; -17.6 lbs)	-9.3% (-9.4 kg; -20.7 lbs)	-12.4% (-12.4 kg; -27.3 lbs)	-0.9% (-1.0 kg; -2.2 lbs)
Key Secondary Endpoints
Percentage of participants achieving body weight reductions of ≥10%ⁱ	35.9 %	45.1 %	59.6 %	8.6 %
Percentage of participants achieving body weight reductions of ≥15%ⁱ	16.5 %	24.0 %	39.6 %	3.6 %

ⁱ

Superiority test was adjusted for multiplicity.

For the treatment-regimen estimand,² each dose of orforglipron led to statistically significant improvements across the primary and all key secondary endpoints.

Percent weight reduction: -7.5% (-7.8 kg; 17.2 lbs; 6 mg), -8.4% (-8.6 kg; 19.0 lbs; 12 mg), -11.2% (-11.3 kg; 25.0 lbs; 36 mg), -2.1% (-2.4 kg; 5.3 lbs; placebo)
Percentage of participants achieving body weight reductions of ≥10%: 33.3% (6 mg), 40.0% (12 mg), 54.6% (36 mg), 12.9% (placebo)
Percentage of participants achieving body weight reductions of ≥15%: 15.1% (6 mg), 20.3% (12 mg), 36.0% (36 mg), 5.9% (placebo)

The overall safety profile of orforglipron in ATTAIN-1 was consistent with the established GLP-1 receptor agonist class. The most commonly reported adverse events were gastrointestinal-related and generally mild-to-moderate in severity. The most common adverse events for participants treated with orforglipron (6 mg, 12 mg and 36 mg, respectively) were nausea (28.9%, 35.9% and 33.7%) vs. 10.4% with placebo, constipation (21.7%, 29.8% and 25.4%) vs. 9.3% with placebo, diarrhea (21.0%, 22.8% and 23.1%) vs. 9.6% with placebo, vomiting (13.0%, 21.4% and 24.0%) vs. 3.5% with placebo, and dyspepsia (13.0%, 16.2% and 14.1%) vs. 5.0% with placebo. Treatment discontinuation rates due to adverse events were 5.1% (6 mg), 7.7% (12 mg) and 10.3% (36 mg) for orforglipron vs. 2.6% with placebo. The overall treatment discontinuation rates were 21.9% (6 mg), 22.5% (12 mg) and 24.4% (36 mg) for orforglipron vs. 29.9% with placebo. No hepatic safety signal was observed.

The detailed ATTAIN-1 results will be presented next month at the European Association for the Study of Diabetes (EASD) Annual Meeting 2025 and published in a peer-reviewed journal. More results from the ATTAIN Phase 3 clinical trial program will be shared later this year, along with findings from the ACHIEVE Phase 3 clinical trial program evaluating orforglipron for adults with type 2 diabetes.

About orforglipron
Orforglipron (or-for-GLIP-ron) is an investigational, once-daily small molecule (non-peptide) oral glucagon-like peptide-1 receptor agonist that can be taken any time of the day without restrictions on food and water intake.³ Orforglipron was discovered by Chugai Pharmaceutical Co., Ltd. and licensed by Lilly in 2018. Chugai and Lilly published the preclinical pharmacology data of this molecule together.⁴Lilly is running Phase 3 studies on orforglipron for the treatment of type 2 diabetes and for weight management in adults with obesity or overweight with at least one weight-related medical problem. It is also being studied as a potential treatment for obstructive sleep apnea (OSA) and hypertension in adults with obesity.

About ATTAIN-1 and ATTAIN clinical trial program
ATTAIN-1 (NCT05869903) is a Phase 3, 72-week, randomized, double-blind, placebo-controlled trial comparing the efficacy and safety of orforglipron 6 mg, 12 mg and 36 mg as monotherapy to placebo in adults with obesity, or overweight with at least one of the following comorbidities: hypertension, dyslipidemia, OSA or cardiovascular disease, who did not have diabetes. The trial randomized 3,127 participants across the U.S., Brazil, China, India, Japan, South Korea, Puerto Rico, Slovakia, Spain and Taiwan in 3:3:3:4 ratio to receive either 6 mg, 12 mg or 36 mg orforglipron or placebo. The primary objective of the study was to demonstrate that orforglipron (6 mg, 12 mg, 36 mg) is superior to placebo in body weight reduction from baseline after 72 weeks in people with a BMI ≥30.0 kg/m² or a BMI ≥27.0 kg/m² with at least one weight-related comorbidity and a history of at least one self-reported unsuccessful dietary effort to lose body weight. All participants in the orforglipron treatment arms started the study at a dose of orforglipron 1 mg once-daily and then increased the dose in a step-wise approach at four-week intervals to their final randomized maintenance dose of 6 mg (via steps at 1 mg and 3 mg), 12 mg (via steps at 1 mg, 3 mg and 6 mg) or 36 mg (via steps at 1 mg, 3 mg, 6 mg, 12 mg and 24 mg). Dose reduction was only allowed for GI tolerability if other mitigations failed.

The ATTAIN Phase 3 global clinical development program for orforglipron has enrolled more than 4,500 people with obesity or overweight across two global registration trials. The program began in 2023 with additional results anticipated this year.

About Lilly

Lilly is a medicine company turning science into healing to make life better for people around the world. We’ve been pioneering life-changing discoveries for nearly 150 years, and today our medicines help tens of millions of people across the globe. Harnessing the power of biotechnology, chemistry and genetic medicine, our scientists are urgently advancing new discoveries to solve some of the world’s most significant health challenges: redefining diabetes care; treating obesity and curtailing its most devastating long-term effects; advancing the fight against Alzheimer’s disease; providing solutions to some of the most debilitating immune system disorders; and transforming the most difficult-to-treat cancers into manageable diseases. With each step toward a healthier world, we’re motivated by one thing: making life better for millions more people. That includes delivering innovative clinical trials that reflect the diversity of our world and working to ensure our medicines are accessible and affordable. To learn more, visit Lilly.com and Lilly.com/news, or follow us on Facebook, Instagram and LinkedIn. P-LLY

Endnotes and References:

The efficacy estimand represents efficacy had all randomized participants remained on study intervention (with possible dose interruptions and modifications) for 72 weeks without initiating prohibited weight management treatments.
The treatment-regimen estimand represents the estimated average treatment effect regardless of adherence to study intervention or initiation of prohibited weight management treatments.
Ma X, Liu R, Pratt EJ, Benson CT, Bhattachar SN, Sloop KW. Effect of Food Consumption on the Pharmacokinetics, Safety, and Tolerability of Once-Daily Orally Administered Orforglipron (LY3502970), a Non-peptide GLP-1 Receptor Agonist. Diabetes Ther. 2024 Apr;15(4):819-832. doi: 10.1007/s13300-024-01554-1. Epub 2024 Feb 24. PMID: 38402332; PMCID: PMC10951152.
T. Kawai, B. Sun, H. Yoshino, D. Feng, Y. Suzuki, M. Fukazawa, S. Nagao, D.B. Wainscott, A.D. Showalter, B.A. Droz, T.S. Kobilka, M.P. Coghlan, F.S. Willard, Y. Kawabe, B.K. Kobilka, & K.W. Sloop, Structural basis for GLP-1 receptor activation by LY3502970, an orally active nonpeptide agonist, Proc. Natl. Acad. Sci. U.S.A. 117 (47) 29959-29967, https://doi.org/10.1073/pnas.2014879117 (2020).

Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) about orforglipron as a potential treatment for adults with obesity or overweight, Lilly’s ability to supply orforglipron, if approved, and the timeline for future readouts, presentations, and other milestones relating to orforglipron and its clinical trials and reflects Lilly’s current beliefs and expectations. However, as with any pharmaceutical product, there are substantial risks and uncertainties in the process of drug research, development, and commercialization. Among other things, there is no guarantee that planned or ongoing studies will be completed as planned, that future study results will be consistent with study results to date, that orforglipron will prove to be a safe and effective treatment for obesity or overweight, that orforglipron will receive regulatory approval, or that Lilly will execute its strategy as expected. For further discussion of these and other risks and uncertainties that could cause actual results to differ from Lilly’s expectations, see Lilly’s Form 10-K and Form 10-Q filings with the United States Securities and Exchange Commission. Except as required by law, Lilly undertakes no duty to update forward-looking statements to reflect events after the date of this release.

Trademarks and Trade Names
All trademarks or trade names referred to in this press release are the property of the company, or, to the extent trademarks or trade names belonging to other companies are references in this press release, the property of their respective owners. Solely for convenience, the trademarks and trade names in this press release are referred to without the ® and ™ symbols, but such references should not be construed as any indicator that the company or, to the extent applicable, their respective owners will not assert, to the fullest extent under applicable law, the company’s or their rights thereto. We do not intend the use or display of other companies’ trademarks and trade names to imply a relationship with, or endorsement or sponsorship of us by, any other companies.

Refer to:	Brooke Frost; [email protected]; 317-432-9145 (Media)
	Michael Czapar; [email protected]; 317-617-0983 (Investors)

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SOURCE Eli Lilly and Company

August 7, 2025 6:21 am

Acushnet Holdings Corp. Announces Second Quarter 2025 Financial Results

Acushnet Holdings Corp. Announces Second Quarter 2025 Financial Results

News Release Available on www.AcushnetHoldingsCorp.com

FAIRHAVEN, Mass.–(BUSINESS WIRE)–
Acushnet Holdings Corp. (NYSE: GOLF) (“Acushnet”) published its second quarter 2025 financial results on August 7, 2025. The results are available via the Acushnet Investor Relations (http://www.acushnetholdingscorp.com/ir) and the U.S. Securities and Exchange Commission (https://www.sec.gov/cgi-bin/browse-edgar?company=acushnet&owner=exclude&action=getcompany) websites.

Acushnet will hold a conference call for investors at 8:30 a.m. Eastern Time on August 7, 2025 to review the second quarter 2025 financial results. A live webcast of that call will be available on the Acushnet Investor Relations website and a replay will be available shortly after the conclusion of the live event.

ABOUT ACUSHNET HOLDINGS CORP.

We are the global leader in the design, development, manufacture and distribution of performance‑driven golf products, and these products are widely recognized for their quality excellence. Driven by our focus on dedicated and discerning golfers and the golf shops that serve them, we believe we are the most authentic and enduring company in the golf industry. Our mission—to be the performance and quality leader in every golf product category in which we compete—has remained consistent since we entered the golf ball business in 1932. Today, we are the steward of two of the most revered brands in golf—Titleist, one of golf’s leading performance equipment brands, and FootJoy, one of golf’s leading performance wearable brands.

Additional information can be found at www.acushnetholdingscorp.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250806521855/en/

MEDIA CONTACT:

[email protected]

INVESTOR CONTACT:

[email protected]

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS: Footwear Retail Golf Sports Manufacturing Textiles

MEDIA:

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August 7, 2025 6:05 am

EPAM Reports Results for Second Quarter 2025 and Raises Full Year Revenue Outlook

PR Newswire

Second

quarter revenues of $1.353 billion, up 18.0% year-over-year
GAAP income from operations was 9.3% of revenues and non-GAAP income from operations was 15.0% of revenues for the second quarter
Second

quarter GAAP diluted EPS of $1.56, a decrease of $0.14, and non-GAAP diluted EPS of $2.77, an increase of $0.32 on a year-over-year basis
Based on the strength of organic constant currency revenue growth and updates to our foreign exchange rate assumptions, EPAM raises its expected year-over-year revenue growth rate to now be in the range of 13.0%

to 15.0%

for 2025

NEWTOWN, Pa.
, Aug. 7, 2025 /PRNewswire/ — EPAM Systems, Inc. (NYSE: EPAM), a leading digital transformation services and product engineering company, today announced results for the second quarter ended June 30, 2025.

“We’re pleased with another strong quarter of sequential organic growth—our third in a row—marking a return to greater consistency in our performance,” said Arkadiy Dobkin, CEO and President at EPAM. “This reaffirms our long-standing view that deep engineering and technology expertise is critical, especially in AI-led solutions and the complex modernization efforts required for AI adoption in the future. It also reflects the distinct structure of our client portfolio, with no material exposure to traditional legacy outsourcing services.”

Balazs Fejes, President of Global Business and Chief Revenue Officer at EPAM added, “As our clients prioritize their AI-readiness and preparatory actions, they are increasingly turning to us to build out their data and AI foundation. The strength of our client relationships and ecosystem partners, along with our organic growth and AI momentum, positions us extremely well to build on this quarter’s success and progress further.”

Second
Quarter 2025 Highlights

Revenues increased to $1.353 billion, a year-over-year increase of $206.8 million, or 18.0%. On an organic constant currency basis, revenues were up 5.3% compared to the second quarter of 2024;
GAAP income from operations was $126.5 million, an increase of $5.9 million, or 4.9%, compared to $120.6 million in the second quarter of 2024;
Non-GAAP income from operations was $202.9 million, an increase of $28.4 million, or 16.3%, compared to $174.5 million in the second quarter of 2024;
Diluted earnings per share (“EPS”) on a GAAP basis was $1.56, a decrease of $0.14, or 8.2%, compared to $1.70 in the second quarter of 2024; and
Non-GAAP diluted EPS was $2.77, an increase of $0.32, or 13.1%, compared to $2.45 in the second quarter of 2024.

Cash Flow and Other Metrics

Cash provided by operating activities was $77.4 million for the first six months of 2025, compared to cash provided by operating activities of $186.9 million for the first six months of 2024;
Cash, cash equivalents and restricted cash totaled $1.046 billion as of June 30, 2025, a decrease of $243.9 million, or 18.9%, from $1.290 billion as of December 31, 2024;
The Company repurchased 1.087 million shares of its common stock for $194.9 million during the second quarter of 2025 under its share repurchase program. As of June 30, 2025, the Company had $82.1 million remaining under its share repurchase authorization; and
Total headcount was approximately 62,050 as of June 30, 2025. Included in this number were approximately 55,800 delivery professionals, an increase of 0.3% from March 31, 2025.

2025 Outlook – Full Year and Third Quarter

Full Year

EPAM expects the following for the full year:

Based on the strength of organic constant currency revenue growth and updates to our foreign exchange rate assumptions, the Company raises its expected year-over-year revenue growth rate to now be in the range of 13.0% to 15.0% for 2025. Additionally, the Company now expects the year-over-year revenue growth rate on an organic constant currency basis to be in the range of 3.0% to 5.0%;
For the full year, EPAM continues to expect GAAP income from operations to be in the range of 9.0% to 10.0% of revenues and non-GAAP income from operations to be in the range of 14.5% to 15.5% of revenues;
The Company now expects its GAAP effective tax rate to be approximately 26.0% and continues to expect its non-GAAP effective tax rate to be approximately 24.0%; and
EPAM now expects GAAP diluted EPS to be in the range of $6.48 to $6.64 and non-GAAP diluted EPS to be in the range of $10.96 to $11.12. The Company now expects weighted average diluted shares outstanding for the year to be 56.4 million.

Third Quarter

EPAM expects the following for the third quarter:

The Company expects revenues will be in the range of $1.365 billion to $1.380 billion for the third quarter reflecting year-over-year growth of 17.6% at the midpoint of the range. The Company expects the year-over-year revenue growth rate on an organic constant currency basis to be 6.2% at the midpoint of the range;
For the third quarter, EPAM expects GAAP income from operations to be in the range of 10.0% to 11.0% of revenues and non-GAAP income from operations to be in the range of 15.5% to 16.5% of revenues;
The Company expects its GAAP effective tax rate to be approximately 25.0% and its non-GAAP effective tax rate to be approximately 24.0%; and
EPAM expects GAAP diluted EPS will be in the range of $1.89 to $1.97 for the quarter, and non-GAAP diluted EPS will be in the range of $2.98 to $3.06 for the quarter. The Company expects weighted average diluted shares outstanding for the quarter to be 55.9 million.

Conference Call Information

EPAM will host a conference call to discuss the results on Thursday, August 7, 2025, at 8:00 a.m. EDT. The conference call will be available live on the EPAM website at https://investors.epam.com. Please visit the website at least 15 minutes prior to the call to register for the event. For those who cannot access the live webcast, a replay will be available in the Investor Relations section of the website.

About EPAM Systems

Since 1993, EPAM Systems, Inc. (NYSE: EPAM) has used its software engineering expertise to become a leading global provider of digital engineering, cloud and AI-enabled transformation services, and a leading business and experience consulting partner for global enterprises and ambitious startups. We address our clients’ transformation challenges by focusing EPAM Continuum’s integrated strategy, experience and technology consulting with our 30+ years of engineering execution to speed our clients’ time to market and drive greater value from their innovations and digital investments.

We leverage AI and GenAI to deliver transformative solutions that accelerate our clients’ digital innovation and enhance their competitive edge. Through platforms like EPAM AI/RUN™ and initiatives like DIALX Lab, we integrate advanced AI technologies into tailored business strategies, driving significant industry impact and fostering continuous innovation.

We deliver globally but engage locally with our expert teams of consultants, architects, designers and engineers, making the future real for our clients, our partners, and our people around the world. We believe the right solutions are the ones that improve people’s lives and fuel competitive advantage for our clients across diverse industries. Our thinking comes to life in the experiences, products and platforms we design and bring to market.

Added to the S&P 500 and the Forbes Global 2000 in 2021 and recognized by Glassdoor and Newsweek as Most Loved Workplace, our multidisciplinary teams serve customers across six continents. We are proud to be among the top 15 companies in Information Technology Services in the Fortune 1000 and to be recognized as a leader in the IDC MarketScapes for Worldwide Experience Build Services, Worldwide Experience Design Services and Worldwide Software Engineering Services.

Learn more at www.epam.com and follow us on LinkedIn.

Non-GAAP Financial Measures

EPAM supplements results reported in accordance with United States generally accepted accounting principles, referred to as GAAP, with non-GAAP financial measures. Management believes these measures help illustrate underlying trends in EPAM’s business and uses the measures to establish budgets and operational goals, communicate internally and externally, for managing EPAM’s business and evaluating its performance. Management also believes these measures help investors compare EPAM’s operating performance with its results in prior periods. EPAM anticipates that it will continue to report both GAAP and certain non-GAAP financial measures in its financial results, including non-GAAP results that exclude stock-based compensation expenses, acquisition-related costs including amortization of acquired intangible assets, impairment of assets, expenses associated with EPAM’s humanitarian commitment to its professionals in Ukraine, costs associated with the geographic repositioning of EPAM employees based outside of Ukraine impacted by the war and geopolitical instability in the region, employee separation costs incurred in connection with restructuring programs including the Company’s exit from Russia, certain other one-time charges and benefits, changes in fair value of contingent consideration, foreign exchange gains and losses, excess tax benefits and tax shortfalls related to stock-based compensation, and the related effect on income taxes of the pre-tax adjustments. Management also compares revenues on an “organic constant currency basis,” which is a non-GAAP financial measure. This measure excludes the effect of acquisitions by removing revenues from an acquired company in the twelve months after completing an acquisition and foreign currency exchange rate fluctuations by translating current period revenues into U.S. dollars at the weighted average exchange rates of the prior period of comparison. Because EPAM’s reported non-GAAP financial measures are not calculated in accordance with GAAP, these measures are not comparable to GAAP and may not be comparable to similarly described non-GAAP measures reported by other companies within EPAM’s industry. Consequently, EPAM’s non-GAAP financial measures should not be evaluated in isolation or supplant comparable GAAP measures, but rather, should be considered together with the information in EPAM’s consolidated financial statements, which are prepared in accordance with GAAP.

Forward-Looking Statements

This press release includes estimates and statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Our estimates and forward-looking statements are mainly based on our current expectations and estimates of future events and trends, which affect or may affect our business and operations. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. Those future events and trends may relate to, among other things, developments relating to the war in Ukraine and escalation of the war in the surrounding region, political and civil unrest or military action in the geographies where we conduct business and operate, difficult conditions in global capital markets, foreign exchange markets, global trade and the broader economy, the adoption and implementation of artificial intelligence technologies by EPAM and its clients, and the effect that these events may have on client demand and our revenues, operations, access to capital, and profitability. Other factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the risk factors discussed in the Company’s most recent Annual Report on Form 10-K and the factors discussed in the Company’s Quarterly Reports on Form 10-Q, particularly under the headings “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” and other filings with the Securities and Exchange Commission. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made based on information currently available to us. EPAM undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

EPAM SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)
	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Revenues	$ 1,353,443	$ 1,146,597	$ 2,655,135	$ 2,312,062
Operating expenses:
Cost of revenues (exclusive of depreciation and amortization)	964,012	810,857	1,916,020	1,645,191
Selling, general and administrative expenses	231,681	194,058	450,598	392,511
Depreciation and amortization expense	31,274	21,121	62,711	43,267
Income from operations	126,476	120,561	225,806	231,093
Interest and other income, net	3,519	12,036	9,333	27,078
Foreign exchange (loss)/gain	(6,227)	1,213	(16,954)	(706)
Income before provision for income taxes	123,768	133,810	218,185	257,465
Provision for income taxes	35,742	35,165	56,677	42,577
Net income	$ 88,026	$ 98,645	$ 161,508	$ 214,888

Net income per share:
Basic	$ 1.56	$ 1.71	$ 2.86	$ 3.72
Diluted	$ 1.56	$ 1.70	$ 2.84	$ 3.67
Shares used in calculation of net income per share:
Basic	56,319	57,594	56,548	57,716
Diluted	56,536	58,149	56,898	58,540

EPAM SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except par value)

	As of June 30, 2025	As of December 31, 2024
Assets
Current assets
Cash and cash equivalents	$ 1,041,344	$ 1,286,267
Trade receivables and contract assets, net of allowance of $4,833 and $5,612, respectively	1,158,956	1,002,175
Prepaid and other current assets	170,175	137,806
Total current assets	2,370,475	2,426,248
Property and equipment, net	201,619	207,667
Operating lease right-of-use assets, net	129,332	128,244
Intangible assets, net	435,891	436,418
Goodwill	1,209,463	1,181,575
Deferred tax assets	240,852	269,799
Other noncurrent assets	123,064	100,522
Total assets	$ 4,710,696	$ 4,750,473

Liabilities
Current liabilities
Accounts payable	$ 45,278	$ 44,702
Accrued compensation and benefits expenses	458,612	484,952
Accrued expenses and other current liabilities	184,643	201,356
Income taxes payable, current	18,461	50,395
Operating lease liabilities, current	40,433	39,634
Total current liabilities	747,427	821,039
Long-term debt	25,038	25,194
Operating lease liabilities, noncurrent	97,220	98,426
Deferred tax liabilities, noncurrent	98,063	92,362
Other noncurrent liabilities	74,586	82,301
Total liabilities	1,042,334	1,119,322
Commitments and contingencies
Equity
Stockholders’ equity
Common stock, $0.001 par value; 160,000 shares authorized; 55,696 shares issued and outstanding at June 30, 2025, and 56,869 shares issued and outstanding at December 31, 2024	56	57
Additional paid-in capital	1,286,067	1,190,222
Retained earnings	2,360,343	2,555,796
Accumulated other comprehensive income/(loss)	21,314	(116,864)
Total EPAM Systems, Inc. stockholders’ equity	3,667,780	3,629,211
Noncontrolling interest in consolidated subsidiaries	582	1,940
Total equity	3,668,362	3,631,151
Total liabilities and equity	$ 4,710,696	$ 4,750,473

EPAM SYSTEMS, INC. AND SUBSIDIARIES
Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures
(Unaudited)
(In thousands, except percentages and per share amounts)

Reconciliation of year-over-year revenue growth as reported on a GAAP basis to revenue growth on an organic constant currency basis is presented in the table below:

	Three Months Ended June 30, 2025	Six Months Ended June 30, 2025
Revenue growth as reported	18.0 %	14.8 %
Inorganic revenue growth	(10.8) %	(11.0) %
Foreign exchange rates impact	(1.9) %	(0.5) %
Revenue growth on an organic constant currency basis	5.3 %	3.3 %

Reconciliation of various income statement amounts from GAAP to non-GAAP for the three and six months ended June 30, 2025 and 2024:

	Three Months Ended June 30, 2025			Six Months Ended June 30, 2025
	GAAP	Adjustments	Non-GAAP	GAAP	Adjustments	Non-GAAP
Cost of revenues (exclusive of depreciation and amortization)⁽¹⁾	$ 964,012	$ (18,232)	$ 945,780	$ 1,916,020	$ (42,773)	$ 1,873,247
Selling, general and administrative expenses⁽²⁾	$ 231,681	$ (40,349)	$ 191,332	$ 450,598	$ (74,572)	$ 376,026
Income from operations⁽³⁾	$ 126,476	$ 76,417	$ 202,893	$ 225,806	$ 152,837	$ 378,643
Operating margin	9.3 %	5.7 %	15.0 %	8.5 %	5.8 %	14.3 %
Net income⁽⁴⁾	$ 88,026	$ 68,765	$ 156,791	$ 161,508	$ 133,298	$ 294,806
Diluted earnings per share	$ 1.56		$ 2.77	$ 2.84		$ 5.18



	Three Months Ended June 30, 2024			Six Months Ended June 30, 2024
	GAAP	Adjustments	Non-GAAP	GAAP	Adjustments	Non-GAAP
Cost of revenues (exclusive of depreciation and amortization)⁽¹⁾	$ 810,857	$ (17,504)	$ 793,353	$ 1,645,191	$ (40,520)	$ 1,604,671
Selling, general and administrative expenses⁽²⁾	$ 194,058	$ (30,620)	$ 163,438	$ 392,511	$ (64,713)	$ 327,798
Income from operations⁽³⁾	$ 120,561	$ 53,945	$ 174,506	$ 231,093	$ 117,003	$ 348,096
Operating margin	10.5 %	4.7 %	15.2 %	10.0 %	5.1 %	15.1 %
Net income⁽⁴⁾	$ 98,645	$ 43,621	$ 142,266	$ 214,888	$ 72,624	$ 287,512
Diluted earnings per share	$ 1.70		$ 2.45	$ 3.67		$ 4.91

Items (1) through (4) above are detailed in the table below with the specific cross-reference noted in the appropriate item.

	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Stock-based compensation expenses	$ 18,161	$ 16,937	$ 42,084	$ 39,294
Poland R&D incentives^(a)	(505)	—	(505)	—
Humanitarian support in Ukraine^(b)	576	567	1,194	1,226
Total adjustments to GAAP cost of revenues⁽¹⁾	18,232	17,504	42,773	40,520
Stock-based compensation expenses	20,397	18,747	44,930	41,181
Cost Optimization charges^(c)	16,275	9,513	21,586	16,530
Other acquisition-related expenses	292	456	862	1,679
Humanitarian support in Ukraine^(b)	3,282	2,119	7,014	4,739
Geographic repositioning^(d)	—	104	—	825
One-time charges/(benefits)	103	(319)	180	(241)
Total adjustments to GAAP selling, general and administrative expenses⁽²⁾	40,349	30,620	74,572	64,713
Amortization of acquired intangible assets	17,836	5,821	35,492	11,770
Total adjustments to GAAP income from operations⁽³⁾	76,417	53,945	152,837	117,003
Foreign exchange loss/(gain)	6,227	(1,213)	16,954	706
Gain on financial instrument	—	—	(350)	—
Change in fair value of contingent consideration included in Interest and other income, net	(232)	1,485	(1,969)	2,535
Provision for income taxes:
Tax effect on non-GAAP adjustments	(18,291)	(10,632)	(38,201)	(25,027)
Tax shortfall/(excess tax benefits) related to stock-based compensation	1,106	103	563	(20,763)
Net discrete charge/(benefit) from tax planning^(e)	3,538	(67)	3,464	(1,830)
Total adjustments to GAAP net income⁽⁴⁾	$ 68,765	$ 43,621	$ 133,298	$ 72,624

(a) We have excluded from non-GAAP results the portion of the benefit from Poland R&D incentives related to qualifying activities performed in 2023 as it represents a nonrecurring one-time benefit.

(b) Humanitarian support in Ukraine includes expenses related to EPAM’s $100 million humanitarian commitment in response to Russia’s invasion of Ukraine to support EPAM professionals and their families in and displaced from Ukraine. These expenses are incremental to those expenses incurred prior to the crisis, clearly separable from normal operations, and not expected to recur once the crisis has subsided and operations return to normal.

(c) Cost Optimization charges include severance, facilities and contract termination charges incurred in connection with the programs initiated in the third quarter of 2023, second quarter of 2024, and second quarter of 2025. Consistent with the Company’s historical non-GAAP policy, costs incurred in connection with formal restructuring initiatives have been excluded from non-GAAP results as these are one-time and unusual in nature.

(d) Geographic repositioning includes expenses associated with the relocation to other countries of employees based outside of Ukraine impacted by the war and geopolitical instability in the region, and includes the cost of accommodations, travel and food. These expenses are incremental to those expenses incurred prior to the crisis, clearly separable from normal operations, and not expected to recur once the crisis has subsided and operations return to normal.

(e) One-time charge or benefit related to the implementation of tax planning to disregard certain foreign subsidiaries as separate entities for U.S. income tax purposes. Consistent with the Company’s historical non-GAAP policy, the charge or benefit related to the implementation of tax planning has been excluded from non-GAAP results as it is one-time and unusual in nature.

EPAM SYSTEMS, INC. AND SUBSIDIARIES
Reconciliations of Guidance Non-GAAP Financial Measures to Comparable GAAP Financial Measures
(Unaudited)

The below guidance constitutes forward-looking statements within the meaning of the federal securities laws and is based on a number of assumptions that are subject to change and many of which are outside the control of the Company. Actual results may differ materially from the Company’s expectations depending on factors discussed in the Company’s filings with the Securities and Exchange Commission.

Reconciliation of expected year-over-year revenue growth on a GAAP basis to expected revenue growth on an organic constant currency basis is presented in the table below:

	Third Quarter 2025	Full Year 2025
	(at midpoint of range)
Revenue growth	17.6 %	13.0% to 15.0%
Foreign exchange rates impact	(1.0) %	(0.9) %
Inorganic revenue growth	(10.4) %	(9.1) %
Revenue growth on an organic constant currency basis	6.2 %	3.0% to 5.0%

Reconciliation of expected GAAP to non-GAAP income from operations as a percentage of revenues is presented in the table below:

	Third Quarter 2025	Full Year 2025
GAAP income from operations as a percentage of revenues	10.0% to 11.0%	9.0% to 10.0%
Stock-based compensation expenses	3.2 %	3.2 %
Included in cost of revenues (exclusive of depreciation and amortization)	1.6 %	1.6 %
Included in selling, general and administrative expenses	1.6 %	1.6 %
Humanitarian support in Ukraine^(b)	0.3 %	0.3 %
Cost Optimization charges^(c)	0.7 %	0.7 %
One-time charges and Other acquisition-related expenses^(f)	— %	— %
Amortization of acquired intangible assets	1.3 %	1.3 %
Non-GAAP income from operations as a percentage of revenues	15.5% to 16.5%	14.5% to 15.5%

(f) EPAM has not included the impact of potential future One-time charges including asset impairments, unusual gains and losses, and Other acquisition-related expenses because the Company is unable to predict these amounts with reasonable certainty.

Reconciliation of expected GAAP to non-GAAP effective tax rate is presented in the table below:

	Third Quarter 2025	Full Year 2025
GAAP effective tax rate (approximately)	25.0 %	26.0 %
Excess tax benefits/(tax shortfall) related to stock-based compensation	0.1 %	(0.1) %
Net discrete charge from tax planning^(e)	— %	(0.7) %
Tax effect on non-GAAP adjustments	(1.1) %	(1.2) %
Non-GAAP effective tax rate (approximately)	24.0 %	24.0 %

Reconciliation of expected GAAP to non-GAAP diluted earnings per share is presented in the table below:

	Third Quarter 2025	Full Year 2025
GAAP diluted earnings per share	$1.89 to $1.97	$6.48 to $6.64
Stock-based compensation expenses	0.79	3.13
Included in cost of revenues (exclusive of depreciation and amortization)	0.39	1.53
Included in selling, general and administrative expenses	0.40	1.60
Poland R&D incentives^(a)	—	(0.01)
Humanitarian support in Ukraine^(b)	0.07	0.28
Cost Optimization charges^(c)	0.16	0.68
Amortization of acquired intangible assets	0.33	1.27
Change in fair value of contingent consideration	—	(0.03)
Foreign exchange loss	0.04	0.34
Provision for income taxes:
Tax effect on non-GAAP adjustments	(0.30)	(1.25)
Tax shortfall related to stock-based compensation	—	0.01
Net discrete charge from tax planning^(e)	—	0.06
Non-GAAP diluted earnings per share	$2.98 to $3.06	$10.96 to $11.12

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SOURCE EPAM Systems, Inc.

August 7, 2025 6:05 am

Targa Resources Corp. Reports Second Quarter 2025 Financial Results

HOUSTON, Aug. 07, 2025 (GLOBE NEWSWIRE) — Targa Resources Corp. (NYSE: TRGP) (“TRGP,” the “Company” or “Targa”) today reported second quarter 2025 results.

Second quarter 2025 net income attributable to Targa Resources Corp. was $629.1 million compared to $298.5 million for the second quarter of 2024. The Company reported adjusted earnings before interest, income taxes, depreciation and amortization, and other non-cash items (“adjusted EBITDA”)⁽¹⁾ of $1,163.0 million for the second quarter of 2025 compared to $984.3 million for the second quarter of 2024.

Highlights

Adjusted EBITDA for the second quarter of $1.16 billion, an 18% increase year over year
Record Permian and NGL transportation volumes during the second quarter
Repurchased $324 million of common shares during the second quarter
Expect early completion of its Pembrook II plant in Permian Midland in August
Expect early completion of its Bull Moose II plant in Permian Delaware, its Delaware Express Pipeline, and its Train 11 fractionator in Mont Belvieu, Texas
Announced a 43-mile extension of Targa’s Bull Run natural gas pipeline (the “Bull Run Extension”) to enhance natural gas connectivity from Targa’s Permian Delaware system to WAHA
Continue to estimate full year 2025 adjusted EBITDA between $4.65 billion and $4.85 billion
Estimate 2025 net growth capital expenditures of approximately $3.0 billion from the acceleration of several projects and the Bull Run Extension
Announced a new $1.0 billion common share repurchase program

On July 10, 2025, the Company declared a quarterly cash dividend of $1.00 per common share, or $4.00 per common share on an annualized basis, for the second quarter of 2025. Total cash dividends of approximately $215 million will be paid on August 15, 2025 on all outstanding shares of common stock to holders of record as of the close of business on July 31, 2025.

During the second quarter of 2025, Targa repurchased 1.96 million shares of its common stock at a weighted average per share price of $165.86 for a total net cost of $324.3 million. As of June 30, 2025, there was $566.2 million remaining under the Company’s $1.0 billion common share repurchase program. In August 2025, the Company’s Board of Directors approved a new share repurchase program for the repurchase of up to $1.0 billion of the Company’s outstanding common stock. The amount authorized under the new share repurchase program is in addition to the amount remaining under the existing share repurchase program.

Second Quarter 2025 – Sequential Quarter over Quarter Commentary

Targa’s reported second quarter adjusted EBITDA of $1,163.0 million was relatively flat compared to the first quarter despite the planned turnaround at Targa’s fractionation facilities in Mont Belvieu, Texas, which reduced operating capacity through much of the second quarter. Second quarter adjusted EBITDA benefited from record Permian and NGL transportation volumes, offset by lower marketing margin, lower commodity prices and higher operating expenses.

In the Gathering and Processing (“G&P”) segment, adjusted operating margin was approximately flat driven by strong growth in Permian natural gas inlet volumes and higher recoveries, offset by significantly lower commodity prices compared to the first quarter.

In the Logistics and Transportation (“L&T”) segment, adjusted operating margin was sequentially flat as record NGL pipeline transportation volumes were offset by lower marketing margin and lower fractionation volumes. Increasing NGL pipeline transportation volumes were attributable to higher supply volumes from Targa’s Permian G&P systems. Lower sequential marketing margin was attributable to fewer optimization opportunities. Fractionation volumes were lower in the second quarter due to the planned turnaround at Targa’s fractionation facilities in Mont Belvieu from March until early June, partially offset by higher Permian supply volumes.

Capitalization, Financing and Liquidity

The Company’s total consolidated debt as of June 30, 2025 was $16,850.5 million, net of $117.4 million of debt issuance costs and $38.0 million of unamortized discount, with $16,034.4 million of outstanding senior unsecured notes, $667.0 million outstanding under the Commercial Paper Program, and $304.5 million of finance lease liabilities.

In June 2025, Targa completed an underwritten public offering of 4.900% Notes due 2030 and 5.650% Notes due 2036, resulting in net proceeds of approximately $1.5 billion. Targa used the net proceeds from the debt issuance to redeem the 6.500% Notes due 2027 in July 2025 and the remaining net proceeds for general corporate purposes, including repayment of borrowings under the Commercial Paper Program.

Total consolidated liquidity as of June 30, 2025 was approximately $3.5 billion, including $2.8 billion available under the TRGP Revolver, $600.0 million under the Securitization Facility and $113.1 million of cash.

In July 2025, the Company extended the maturity of its Securitization Facility to August 31, 2026.

Growth Projects Update

In Targa’s G&P segment, the Company expects early completion of its new 275 million cubic feet per day (“MMcf/d”) Pembrook II plant in Permian Midland in August 2025. Construction continues on Targa’s 275 MMcf/d East Pembrook and East Driver plants in Permian Midland, and its 275 MMcf/d Bull Moose II and Falcon II plants in Permian Delaware. The Company now expects its Bull Moose II plant to begin operations in the fourth quarter of 2025, earlier than previously expected, and remains on-track to complete its other announced expansions as previously disclosed. Additionally, to accommodate future growth across Targa’s Permian G&P systems, the Company is moving forward with acquiring long-lead items for its next gas processing expansions in the Permian.

In Targa’s L&T segment, construction continues on its Delaware Express Pipeline expansion, its 150 thousand barrels per day (“MBbl/d”) Train 11 and Train 12 fractionators in Mont Belvieu, and its GPMT LPG Export Expansion. The Company now expects both its Delaware Express Pipeline and Train 11 fractionator to begin operations in the second quarter of 2026, earlier than previously expected, and remains on-track to complete its other announced expansions as previously disclosed.

In August 2025, in response to increasing production and to meet the infrastructure needs of its customers, Targa announced a 43-mile extension of its Bull Run intrastate natural gas pipeline in the Permian Delaware to expand its existing connectivity to WAHA. The Bull Run Extension is expected to begin operations in the first quarter of 2027.

2025 Outlook

Targa continues to estimate full year 2025 adjusted EBITDA to be between $4.65 billion and $4.85 billion supported by forecasted growth across its Permian G&P footprint, which is expected to drive record Permian, NGL pipeline transportation, fractionation, and LPG export volumes in 2025 relative to records set in 2024. Based on current positive Permian volume trends, the Company expects to be positioned well for continued momentum in the second half of 2025 and into 2026.

With today’s announcement of earlier than expected completion of several projects, the Bull Run Extension and incremental spending for Targa’s next Permian gas processing expansions, the Company now estimates total net growth capital expenditures for 2025 of approximately $3.0 billion. Targa’s estimate for 2025 net maintenance capital expenditures remains unchanged at approximately $250 million.

Conference Call

The Company will host a conference call for the investment community at 11:00 a.m. Eastern time (10:00 a.m. Central time) on August 7, 2025 to discuss its second quarter results. The conference call can be accessed via webcast under Events and Presentations in the Investors section of the Company’s website at www.targaresources.com/investors/events, or by going directly to https://edge.media-server.com/mmc/p/vkst8uaw. A webcast replay will be available at the link above approximately two hours after the conclusion of the event.

An earnings supplement presentation and updated investor presentation are available under Events and Presentations in the Investors section of the Company’s website at www.targaresources.com/investors/events.

^{(1) Adjusted EBITDA and adjusted operating margin (segment) are non-GAAP financial measures and are discussed under “Non-GAAP Financial Measures.”}

Targa Resources Corp. – Consolidated Financial Results of Operations

	Three Months Ended June 30,											Six Months Ended June 30,
	2025			2024			2025 vs. 2024					2025			2024			2025 vs. 2024
	(In millions)
Revenues:
Sales of commodities	$	3,636.3		$	2,966.7		$	669.6		23	%	$	7,520.7		$	6,909.3		$	611.4			9	%
Fees from midstream services		623.8			595.3			28.5		5	%		1,300.9			1,215.1			85.8			7	%
Total revenues		4,260.1			3,562.0			698.1		20	%		8,821.6			8,124.4			697.2			9	%
Product purchases and fuel		2,436.0			2,197.4			238.6		11	%		5,693.8			5,415.4			278.4			5	%
Operating expenses		323.6			290.7			32.9		11	%		627.2			568.7			58.5			10	%
Depreciation and amortization expense		373.7			348.6			25.1		7	%		741.3			689.1			52.2			8	%
General and administrative expense		95.0			98.3			(3.3	)	(3	%)		189.5			184.8			4.7			3	%
Other operating (income) expense		(1.8	)		(0.2	)		(1.6	)	NM			(7.1	)		(0.3	)		(6.8	)	NM
Income (loss) from operations		1,033.6			627.2			406.4		65	%		1,576.9			1,266.7			310.2			24	%
Interest expense, net		(218.4	)		(176.0	)		(42.4	)	24	%		(415.5	)		(404.6	)		(10.9	)		3	%
Equity earnings (loss)		5.1			2.9			2.2		76	%		10.6			5.6			5.0			89	%
Other, net		1.0			(0.9	)		1.9		NM			1.3			1.0			0.3			30	%
Income tax (expense) benefit		(184.1	)		(94.3	)		(89.8	)	95	%		(256.3	)		(177.1	)		(79.2	)		45	%
Net income (loss)		637.2			358.9			278.3		78	%		917.0			691.6			225.4			33	%
Less: Net income (loss) attributable to noncontrolling interests		8.1			60.4			(52.3	)	(87	%)		17.4			117.9			(100.5	)		(85	%)
Net income (loss) attributable to Targa Resources Corp.		629.1			298.5			330.6		111	%		899.6			573.7			325.9			57	%
Premium on repurchase of noncontrolling interests, net of tax		—			—			—		—			70.5			—			70.5			100	%
Net income (loss) attributable to common shareholders	$	629.1		$	298.5		$	330.6		111	%	$	829.1		$	573.7		$	255.4			45	%
Financial data:
Adjusted EBITDA (1)	$	1,163.0		$	984.3		$	178.7		18	%	$	2,341.5		$	1,950.8		$	390.7			20	%
Adjusted cash flow from operations (1)		934.4			808.5			125.9		16	%		1,904.4			1,547.2			357.2			23	%
Adjusted free cash flow (1)		(9.6	)		(43.0	)		33.4		78	%		318.6			(40.0	)		358.6		NM

________________________
^{(1) Adjusted EBITDA, adjusted cash flow from operations and adjusted free cash flow are non-GAAP financial measures and are discussed under “Non-GAAP Financial Measures.”}
^{NM Due to a low denominator, the noted percentage change is disproportionately high and as a result, considered not meaningful.}

Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024

The increase in commodity sales reflected higher NGL volumes ($304.2 million), higher natural gas prices ($296.4 million) and the favorable impact of hedges ($290.5 million), partially offset by lower NGL and condensate prices ($217.3 million).

The increase in fees from midstream services was primarily due to higher gas gathering and processing fees, and higher export volumes, partially offset by lower transportation and fractionation fees. Lower transportation and fractionation fees were due to a planned turnaround at a portion of the Company’s facilities in Mont Belvieu, Texas.

The increase in product purchases and fuel reflected higher NGL volumes and natural gas prices, partially offset by lower NGL prices.

The increase in operating expenses was primarily due to higher labor and maintenance costs, and taxes, which were associated with system expansions and the planned turnaround at a portion of the Company’s facilities in Mont Belvieu, Texas.

See “—Review of Segment Performance” for additional information on a segment basis.

The increase in depreciation and amortization expense was primarily due to the impact of system expansions on the Company’s asset base.

The increase in interest expense, net, was primarily due to higher borrowings in 2025.

The increase in income tax expense was primarily due to the increase in pre-tax book income and a decrease in income allocated to noncontrolling interest that is not taxable to the Company.

The decrease in net income attributable to noncontrolling interests was primarily due to the acquisition of the remaining membership interest in Targa Badlands LLC in the first quarter of 2025 (the “Badlands Transaction”) and the acquisition of the remaining membership interest in Cedar Bayou Fractionators, L.P. in the fourth quarter of 2024 (the “CBF Acquisition”).

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

The increase in commodity sales reflected higher natural gas prices ($503.7 million), higher NGL volumes ($133.8 million) and the favorable impact of hedges ($34.4 million), partially offset by lower condensate prices ($41.6 million) and lower natural gas and condensate volumes ($29.3 million).

The increase in product purchases and fuel reflected higher natural gas prices and higher NGL volumes, partially offset by lower natural gas volumes.

See “—Review of Segment Performance” for additional information on a segment basis.

The increase in depreciation and amortization expense was primarily due to the impact of system expansions on the Company’s asset base.

The increase in interest expense, net, was primarily due to higher borrowings in 2025, partially offset by the recognition of cumulative interest on a legal ruling associated with the Splitter Agreement in 2024.

The increase in income tax expense was primarily due to the increase in pre-tax book income and a decrease in income allocated to noncontrolling interest that is not taxable to the Company.

The decrease in net income attributable to noncontrolling interests was primarily due to the Badlands Transaction in the first quarter of 2025 and the CBF Acquisition in the fourth quarter of 2024.

The premium on repurchase of noncontrolling interests, net of tax was due to the Badlands Transaction in 2025.

Review of Segment Performance

The following discussion of segment performance includes inter-segment activities. The Company views segment operating margin and adjusted operating margin as important performance measures of the core profitability of its operations. These measures are key components of internal financial reporting and are reviewed for consistency and trend analysis. For a discussion of adjusted operating margin, see “Non-GAAP Financial Measures ― Adjusted Operating Margin.” Segment operating financial results and operating statistics include the effects of intersegment transactions. These intersegment transactions have been eliminated from the consolidated presentation.

The Company operates in two primary segments: (i) Gathering and Processing; and (ii) Logistics and Transportation.

Gathering and Processing Segment

The Gathering and Processing segment includes assets used in the gathering and/or purchase and sale of natural gas produced from oil and gas wells, removing impurities and processing this raw natural gas into merchantable natural gas by extracting NGLs; and assets used for the gathering and terminaling and/or purchase and sale of crude oil. The Gathering and Processing segment’s assets are located in the Permian Basin of West Texas and Southeast New Mexico (including the Midland, Central and Delaware Basins); the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma (including the SCOOP and STACK) and South Central Kansas; the Williston Basin in North Dakota (including the Bakken and Three Forks plays); and the onshore and near offshore regions of the Louisiana Gulf Coast.

The following table provides summary data regarding results of operations of this segment for the periods indicated:

	Three Months Ended June 30,										Six Months Ended June 30,
	2025		2024		2025 vs. 2024						2025		2024		2025 vs. 2024
		(In millions, except operating statistics and price amounts)
Operating margin	$	587.6	$	572.6	$	15.0			3	%	$	1,189.8	$	1,128.9	$	60.9		5	%
Operating expenses		219.4		205.7		13.7			7	%		427.6		393.7		33.9		9	%
Adjusted operating margin	$	807.0	$	778.3	$	28.7			4	%	$	1,617.4	$	1,522.6	$	94.8		6	%
Operating statistics (1):
Plant natural gas inlet, MMcf/d (2) (3)
Permian Midland (4)		3,106.2		2,866.4		239.8			8	%		3,046.3		2,806.3		240.0		9	%
Permian Delaware		3,171.8		2,805.1		366.7			13	%		3,096.5		2,727.0		369.5		14	%
Total Permian		6,278.0		5,671.5		606.5			11	%		6,142.8		5,533.3		609.5		11	%

SouthTX		381.5		339.4		42.1			12	%		338.5		322.2		16.3		5	%
North Texas		172.6		191.8		(19.2	)		(10	%)		172.1		188.1		(16.0	)	(9	%)
SouthOK (5)		322.2		361.5		(39.3	)		(11	%)		320.1		359.3		(39.2	)	(11	%)
WestOK		210.0		215.1		(5.1	)		(2	%)		205.1		212.6		(7.5	)	(4	%)
Total Central		1,086.3		1,107.8		(21.5	)		(2	%)		1,035.8		1,082.2		(46.4	)	(4	%)

Badlands (5) (6)		130.9		143.9		(13.0	)		(9	%)		133.9		135.5		(1.6	)	(1	%)
Total Field		7,495.2		6,923.2		572.0			8	%		7,312.5		6,751.0		561.5		8	%

Coastal		398.8		467.0		(68.2	)		(15	%)		398.8		495.8		(97.0	)	(20	%)

Total		7,894.0		7,390.2		503.8			7	%		7,711.3		7,246.8		464.5		6	%
NGL production, MBbl/d (3)
Permian Midland (4)		450.1		424.1		26.0			6	%		439.9		408.4		31.5		8	%
Permian Delaware		406.7		364.5		42.2			12	%		386.8		335.7		51.1		15	%
Total Permian		856.8		788.6		68.2			9	%		826.7		744.1		82.6		11	%

SouthTX		39.8		42.2		(2.4	)		(6	%)		34.3		35.6		(1.3	)	(4	%)
North Texas		21.3		23.5		(2.2	)		(9	%)		21.1		22.7		(1.6	)	(7	%)
SouthOK (5)		43.0		43.5		(0.5	)		(1	%)		38.1		35.8		2.3		6	%
WestOK		16.1		15.5		0.6			4	%		15.6		13.6		2.0		15	%
Total Central		120.2		124.7		(4.5	)		(4	%)		109.1		107.7		1.4		1	%

Badlands (5)		16.6		18.0		(1.4	)		(8	%)		16.5		16.3		0.2		1	%
Total Field		993.6		931.3		62.3			7	%		952.3		868.1		84.2		10	%

Coastal		31.6		34.4		(2.8	)		(8	%)		32.2		36.7		(4.5	)	(12	%)

Total		1,025.2		965.7		59.5			6	%		984.5		904.8		79.7		9	%
Crude oil, Badlands, MBbl/d		90.3		99.1		(8.8	)		(9	%)		98.7		96.8		1.9		2	%
Crude oil, Permian, MBbl/d		26.2		27.9		(1.7	)		(6	%)		27.6		27.7		(0.1	)	—
Natural gas sales, BBtu/d (3)		2,819.5		2,843.5		(24.0	)		(1	%)		2,706.7		2,747.0		(40.3	)	(1	%)
NGL sales, MBbl/d (3)		606.4		569.7		36.7			6	%		588.4		534.3		54.1		10	%
Condensate sales, MBbl/d		20.1		21.2		(1.1	)		(5	%)		19.1		20.1		(1.0	)	(5	%)
Average realized prices (7):
Natural gas, $/MMBtu		1.01		0.10		0.91		NM				1.59		0.78		0.81		104	%
NGL, $/gal		0.41		0.44		(0.03	)		(7	%)		0.46		0.46		—		—
Condensate, $/Bbl		63.79		72.83		(9.04	)		(12	%)		67.80		74.91		(7.11	)	(9	%)

________________________
^{(1) Segment operating statistics include the effect of intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the period and the denominator is the number of calendar days during the period.}
^{(2) Plant natural gas inlet represents the Company’s undivided interest in the volume of natural gas passing through the meter located at the inlet of a natural gas processing plant, other than Badlands during 2024.}
^{(3) Plant natural gas inlet volumes and gross NGL production volumes include producer take-in-kind volumes, while natural gas sales and NGL sales exclude producer take-in-kind volumes.}
^{(4) Permian Midland includes operations in WestTX, of which the Company owns a 72.8% undivided interest, and other plants that are owned 100% by the Company. Operating results for the WestTX undivided interest assets are presented on a pro-rata net basis in the Company’s reported financials.}
^{(5) Operations include facilities that are not wholly owned by the Company.}
^{(6) Badlands natural gas inlet represents the total wellhead volume and includes the Targa volumes processed at the Little Missouri 4 plant.}
^{(7) Average realized prices, net of fees, include the effect of realized commodity hedge gain/loss attributable to the Company’s equity volumes. The price is calculated using total commodity sales plus the hedge gain/loss as the numerator and total sales volume as the denominator, net of fees.}

The following table presents the realized commodity hedge gain (loss) attributable to the Company’s equity volumes that are included in the adjusted operating margin of the Gathering and Processing segment:

	Three Months Ended June 30, 2025								Three Months Ended June 30, 2024
	(In millions, except volumetric data and price amounts)
	Volume Settled		Price Spread (1)			Gain (Loss)			Volume Settled		Price Spread (1)			Gain (Loss)
Natural gas (BBtu)		7.4	$	2.095		$	15.5			10.5	$	2.581		$	27.1
NGL (MMgal)		83.6		(0.005	)		(0.4	)		112.0		0.046			5.1
Crude oil (MBbl)		0.7		7.714			5.4			0.4		(11.250	)		(4.5	)
						$	20.5							$	27.7

	Six Months Ended June 30, 2025								Six Months Ended June 30, 2024
	(In millions, except volumetric data and price amounts)
	Volume Settled		Price Spread (1)			Gain (Loss)			Volume Settled		Price Spread (1)			Gain (Loss)
Natural gas (BBtu)		15.1	$	1.517		$	22.9			26.2	$	1.733		$	45.4
NGL (MMgal)		181.2		(0.038	)		(7.0	)		246.1		0.028			6.8
Crude oil (MBbl)		1.4		4.357			6.1			0.9		(8.222	)		(7.4	)
						$	22.0							$	44.8

________________________
^{(1) The price spread is the differential between the contracted derivative instrument pricing and the price of the corresponding settled commodity transaction.}

Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024

The increase in adjusted operating margin was predominantly due to higher natural gas inlet volumes in the Permian, partially offset by lower volumes in other areas. The increase in natural gas inlet volumes in the Permian was attributable to the addition of the Roadrunner II plant during the second quarter of 2024, the Greenwood II plant during the fourth quarter of 2024, the Bull Moose plant during the first quarter of 2025, and continued strong producer activity.

The increase in operating expenses was primarily due to higher volumes and multiple plant additions in the Permian.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

The increase in adjusted operating margin was predominantly due to higher natural gas inlet volumes in the Permian. The increase in natural gas inlet volumes in the Permian was attributable to the addition of the Roadrunner II plant during the second quarter of 2024, the Greenwood II plant during the fourth quarter of 2024, the Bull Moose plant during the first quarter of 2025, and continued strong producer activity.

The increase in operating expenses was primarily due to higher volumes and multiple plant additions in the Permian.

Logistics and Transportation Segment

The Logistics and Transportation segment includes the activities and assets necessary to convert mixed NGLs into NGL products and also includes other assets and value-added services such as transporting, storing, fractionating, terminaling, and marketing of NGLs and NGL products, including services to LPG exporters and certain natural gas supply and marketing activities in support of the Company’s other businesses. The Logistics and Transportation segment also includes Targa’s NGL pipeline system, which connects the Company’s gathering and processing positions in the Permian Basin, Southern Oklahoma and North Texas with the Company’s Downstream facilities in Mont Belvieu, Texas. The Company’s Downstream facilities are located predominantly in Mont Belvieu and Galena Park, Texas, and in Lake Charles, Louisiana.

The following table provides summary data regarding results of operations of this segment for the periods indicated:

	Three Months Ended June 30,								Six Months Ended June 30,
	2025		2024		2025 vs. 2024				2025		2024		2025 vs. 2024
	(In millions, except operating statistics)
Operating margin	$	632.4	$	547.7	$	84.7	15	%	$	1,279.1	$	1,079.8	$	199.3	18	%
Operating expenses		105.4		85.4		20.0	23	%		200.9		175.4		25.5	15	%
Adjusted operating margin	$	737.8	$	633.1	$	104.7	17	%	$	1,480.0	$	1,255.2	$	224.8	18	%
Operating statistics MBbl/d (1):
NGL pipeline transportation volumes		961.2		783.5		177.7	23	%		902.7		750.6		152.1	20	%
Fractionation volumes		969.1		902.2		66.9	7	%		974.5		849.7		124.8	15	%
Export volumes		423.1		394.1		29.0	7	%		435.3		416.6		18.7	4	%
NGL sales		1,151.1		1,018.4		132.7	13	%		1,168.6		1,123.0		45.6	4	%

________________________
^{(1) Segment operating statistics include intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the period and the denominator is the number of calendar days during the period.}

Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024

The increase in adjusted operating margin was due to higher pipeline transportation and fractionation margin, and higher LPG export margin. Pipeline transportation and fractionation volumes benefited from higher supply volumes primarily from the Company’s Permian Gathering and Processing systems, a full quarter of operation of Train 9 which was added during the second quarter of 2024, the in-service of Daytona NGL Pipeline during the third quarter of 2024, and the addition of Train 10 during the fourth quarter of 2024. Fractionation volumes were higher despite a planned turnaround at a portion of the Company’s facilities in Mont Belvieu, Texas. LPG export margin increased due to higher volumes and fees.

The increase in operating expenses was predominately due to a planned turnaround and system expansions.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

The increase in operating expenses was predominately due to system expansions and a planned turnaround.

Other

	Three Months Ended June 30,							Six Months Ended June 30,
	2025		2024			2025 vs. 2024		2025		2024			2025 vs. 2024
	(In millions)
Operating margin	$	280.5	$	(46.6	)	$	327.1	$	31.7	$	(68.7	)	$	100.4
Adjusted operating margin	$	280.5	$	(46.6	)	$	327.1	$	31.7	$	(68.7	)	$	100.4

Other contains the results of commodity derivative activity mark-to-market gains/losses related to derivative contracts that were not designated as cash flow hedges. The Company has entered into derivative instruments to hedge the commodity price associated with a portion of the Company’s future commodity purchases and sales and natural gas transportation basis risk within the Company’s Logistics and Transportation segment.

About Targa Resources Corp.

Targa Resources Corp. is a leading provider of midstream services and is one of the largest independent infrastructure companies in North America. The Company owns, operates, acquires and develops a diversified portfolio of complementary domestic infrastructure assets and its operations are critical to the efficient, safe and reliable delivery of energy across the United States and increasingly to the world. The Company’s assets connect natural gas and NGLs to domestic and international markets with growing demand for cleaner fuels and feedstocks. The Company is primarily engaged in the business of: gathering, compressing, treating, processing, transporting, and purchasing and selling natural gas; transporting, storing, fractionating, treating, and purchasing and selling NGLs and NGL products, including services to LPG exporters; and gathering, storing, terminaling, and purchasing and selling crude oil.

Targa is a FORTUNE 500 company and is included in the S&P 500.

For more information, please visit the Company’s website at www.targaresources.com.

Non-GAAP Financial Measures

This press release includes the Company’s non-GAAP financial measures: adjusted EBITDA, adjusted cash flow from operations, adjusted free cash flow and adjusted operating margin (segment). The following tables provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures.

The Company utilizes non-GAAP measures to analyze the Company’s performance. Adjusted EBITDA, adjusted cash flow from operations, adjusted free cash flow and adjusted operating margin (segment) are non-GAAP measures. The GAAP measures most directly comparable to these non-GAAP measures are income (loss) from operations, Net income (loss) attributable to Targa Resources Corp. and segment operating margin. These non-GAAP measures should not be considered as an alternative to GAAP measures and have important limitations as analytical tools. Investors should not consider these measures in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Additionally, because the Company’s non-GAAP measures exclude some, but not all, items that affect income and segment operating margin, and are defined differently by different companies within the Company’s industry, the Company’s definitions may not be comparable with similarly titled measures of other companies, thereby diminishing their utility. Management compensates for the limitations of the Company’s non-GAAP measures as analytical tools by reviewing the comparable GAAP measures, understanding the differences between the measures and incorporating these insights into the Company’s decision-making processes.

Adjusted Operating Margin

The Company defines adjusted operating margin for the Company’s segments as revenues less product purchases and fuel. It is impacted by volumes and commodity prices as well as by the Company’s contract mix and commodity hedging program.

Gathering and Processing adjusted operating margin consists primarily of:

service fees related to natural gas and crude oil gathering, treating and processing; and
revenues from the sale of natural gas, condensate, crude oil and NGLs less producer settlements, fuel and transport and the Company’s equity volume hedge settlements.

Logistics and Transportation adjusted operating margin consists primarily of:

service fees (including the pass-through of energy costs included in certain fee rates);
system product gains and losses; and
NGL and natural gas sales, less NGL and natural gas purchases, fuel, third-party transportation costs and the net inventory change.

The adjusted operating margin impacts of mark-to-market hedge unrealized changes in fair value are reported in Other.

Adjusted operating margin for the Company’s segments provides useful information to investors because it is used as a supplemental financial measure by management and by external users of the Company’s financial statements, including investors and commercial banks, to assess:

the financial performance of the Company’s assets without regard to financing methods, capital structure or historical cost basis;
the Company’s operating performance and return on capital as compared to other companies in the midstream energy sector, without regard to financing or capital structure; and
the viability of capital expenditure projects and acquisitions and the overall rates of return on alternative investment opportunities.

Management reviews adjusted operating margin and operating margin for the Company’s segments monthly as a core internal management process. The Company believes that investors benefit from having access to the same financial measures that management uses in evaluating the Company’s operating results. The reconciliation of the Company’s adjusted operating margin to the most directly comparable GAAP measure is presented under “Review of Segment Performance.”

Adjusted EBITDA

The Company defines adjusted EBITDA as Net income (loss) attributable to Targa Resources Corp. before interest, income taxes, depreciation and amortization, and other items that the Company believes should be adjusted consistent with the Company’s core operating performance. The adjusting items are detailed in the adjusted EBITDA reconciliation table and its footnotes. Adjusted EBITDA is used as a supplemental financial measure by the Company and by external users of the Company’s financial statements such as investors, commercial banks and others to measure the ability of the Company’s assets to generate cash sufficient to pay interest costs, support the Company’s indebtedness and pay dividends to the Company’s investors.

Adjusted Cash Flow from Operations and Adjusted Free Cash Flow

The Company defines adjusted cash flow from operations as adjusted EBITDA less cash interest expense on debt obligations and cash tax (expense) benefit. The Company defines adjusted free cash flow as adjusted cash flow from operations less maintenance capital expenditures (net of any reimbursements of project costs) and growth capital expenditures, net of contributions from noncontrolling interests and including contributions to investments in unconsolidated affiliates. Adjusted cash flow from operations and adjusted free cash flow are performance measures used by the Company and by external users of the Company’s financial statements, such as investors, commercial banks and research analysts, to assess the Company’s ability to generate cash earnings (after servicing the Company’s debt and funding capital expenditures) to be used for corporate purposes, such as payment of dividends, retirement of debt or redemption of other financing arrangements.

The following table reconciles the non-GAAP financial measures used by management to the most directly comparable GAAP measures for the periods indicated:

	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
	(In millions)
Reconciliation of Net income (loss) attributable to Targa Resources Corp. to Adjusted EBITDA, Adjusted Cash Flow from Operations and Adjusted Free Cash Flow
Net income (loss) attributable to Targa Resources Corp.	$	629.1		$	298.5		$	899.6		$	573.7
Interest (income) expense, net		218.4			176.0			415.5			404.6
Income tax expense (benefit)		184.1			94.3			256.3			177.1
Depreciation and amortization expense		373.7			348.6			741.3			689.1
(Gain) loss on sale or disposition of assets		(0.7	)		(0.6	)		(1.2	)		(1.6	)
Write-down of assets		9.6			0.3			11.6			1.2
(Gain) loss from financing activities		—			0.8			0.6			0.8
Equity (earnings) loss		(5.1	)		(2.9	)		(10.6	)		(5.6	)
Distributions from unconsolidated affiliates		6.2			5.9			11.1			12.2
Compensation on equity grants		17.1			15.1			34.7			29.7
Risk management activities		(280.5	)		46.6			(31.7	)		68.8
Noncontrolling interests adjustments (1)		2.5			1.7			5.7			0.8
Litigation expense (2)		8.6			—			8.6			—
Adjusted EBITDA	$	1,163.0		$	984.3		$	2,341.5		$	1,950.8
Interest expense on debt obligations (3)		(214.3	)		(172.4	)		(407.5	)		(397.3	)
Cash taxes		(14.3	)		(3.4	)		(29.6	)		(6.3	)
Adjusted Cash Flow from Operations	$	934.4		$	808.5		$	1,904.4		$	1,547.2
Maintenance capital expenditures, net (4)		(58.9	)		(52.8	)		(106.2	)		(102.7	)
Growth capital expenditures, net (4)		(885.1	)		(798.7	)		(1,479.6	)		(1,484.5	)
Adjusted Free Cash Flow	$	(9.6	)	$	(43.0	)	$	318.6		$	(40.0	)

________________________
_{(1) Represents adjustments related to the Company’s subsidiaries with noncontrolling interests, including depreciation and amortization expense as well as earnings for certain plants within Targa’s WestTX joint venture not subject to noncontrolling interest accounting.}
_{(2) Litigation expense includes charges related to litigation resulting from the major winter storm in February 2021 that the Company considers outside the ordinary course of the Company’s business and/or not reflective of the Company’s ongoing core operations. The Company may incur such charges from time to time, and the Company believes it is useful to exclude such charges because the Company does not consider them reflective of Company’s ongoing core operations and because of the generally singular nature of the claims underlying such litigation.}
_{(3) Excludes amortization of interest expense. The three and six months ended June 30, 2024 includes $0.9 million and $55.8 million, respectively, of interest expense on a 2024 legal ruling associated with an agreement, dated December 27, 2015, for crude oil and condensate between Targa Channelview LLC, then a subsidiary of the Company, and Noble Americas Corp (the “Splitter Agreement”).}
_{(4) Represents capital expenditures, net of contributions from noncontrolling interests and includes contributions to investments in unconsolidated affiliates.}

The following table presents a reconciliation of estimated net income of the Company to estimated adjusted EBITDA for 2025:

	2025E
	(In millions)
Reconciliation of Estimated Net Income Attributable to Targa Resources Corp. to
Estimated Adjusted EBITDA
Net income attributable to Targa Resources Corp.	$	1,830.0
Interest expense, net		865.0
Income tax expense		485.0
Depreciation and amortization expense		1,510.0
Equity earnings		(22.0	)
Distributions from unconsolidated affiliates		26.0
Compensation on equity grants		70.0
Risk management and other		(17.0	)
Noncontrolling interests adjustments (1)		3.0
Estimated Adjusted EBITDA	$	4,750.0

Regulation FD Disclosures

The Company uses any of the following to comply with its disclosure obligations under Regulation FD: press releases, SEC filings, public conference calls, or our website. The Company routinely posts important information on its website at www.targaresources.com, including information that may be deemed to be material. The Company encourages investors and others interested in the company to monitor these distribution channels for material disclosures.

Forward-Looking Statements

Certain statements in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements, including statements regarding our projected financial performance, capital spending and payment of future dividends. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the Company’s control, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, actions taken by other countries with significant hydrocarbon production, weather, political, economic and market conditions, including a decline in the price and market demand for natural gas, natural gas liquids and crude oil, the timing and success of our completion of capital projects and business development efforts, the expected growth of volumes on our systems, the impact of significant public health crises, commodity price volatility due to ongoing or new global conflicts, the impact of disruptions in the bank and capital markets, changes in laws and regulations, particularly with regard to taxes, tariffs and international trade, and other uncertainties. These and other applicable uncertainties, factors and risks are described more fully in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company does not undertake an obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Targa Investor Relations
[email protected]
(713) 584-1133

August 7, 2025 6:05 am

Century Casinos, Inc. Announces Second Quarter 2025 Results

PR Newswire

Company Initiates Strategic Review Process to Enhance Shareholder Value.

COLORADO SPRINGS, Colo.
, Aug. 7, 2025 /PRNewswire/ — Century Casinos, Inc. (the “Company”, “we”, “us”, or “our”) (Nasdaq Capital Market®: CNTY) today announced its financial results for the three and six months ended June 30, 2025.

Second Quarter 2025 Highlights*

Compared to the three months ended June 30, 2024:

Net operating revenue was $150.8 million, an increase of 3%.
Earnings from operations was $16.6 million, an increase of 16%.
Net loss attributable to Century Casinos, Inc. shareholders was ($12.3) million, a decrease in net loss of 70%, and basic net loss per share was ($0.40).
Adjusted EBITDAR** was $30.3 million, an increase of 10%.

“We are proud of the strength and momentum we have built across our portfolio, which has shown solid year over year growth and generated positive cash flow in the quarter. Following various inquiries from third parties about potential asset sales and strategic partnerships, we have initiated a strategic review process as part of our ongoing commitment to driving long-term value creation and optimizing our portfolio of assets and operations,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked.

UPDATES

Sports Betting – Missouri
– In May 2025, the Company announced that it has partnered with BetMGM to operate an online and mobile sports betting application under the Company’s license in Missouri. The agreement includes a percentage of net gaming revenue payable to the Company, with a guaranteed minimum, as well as retail sportsbook options to be exercised at the Company’s discretion. Sports betting is expected to begin in Missouri in the fourth quarter of 2025.

Caruthersville, Missouri

– Since the opening of the new casino and hotel on November 1, 2024, net operating revenue and Adjusted EBITDAR** have increased 26% and 31% respectively.

Poland

– The Company was awarded a second license in the city of Wroclaw in March 2025. The Company expects to open the casino in the fourth quarter of 2025. The Company was notified in June 2025 that it had not received a new license for a second casino in Warsaw and closed the casino at the Hilton Hotel. The license for the Company’s flagship casino in Warsaw at The Presidential Hotel runs through 2028.

Strategic Review Process
– The Company’s Board of Directors (the “Board”) has initiated a comprehensive strategic review of its operations, capital structure and strategic growth options. The review will explore a range of potential strategic alternatives for the Company’s assets and businesses aimed at enhancing shareholder value and supporting long-term growth. These alternatives may include opportunities to unlock value within our existing property portfolio, optimize the Company’s capital structure, evaluate potential mergers, strategic partnerships, or the sale of the Company, and to analyze potential divestments of assets or other asset-level transactions. In connection with this review, the Company has engaged Faegre Drinker Biddle & Reath LLP as legal counsel and Macquarie Capital as financial advisor.

This review follows the Company’s recent substantial capital expenditure program and solid operational performance in the second quarter of 2025 and reflects the Board’s proactive approach to positioning the Company for future success in an evolving market landscape. The Board has not set a timetable for the conclusion of this review. At this stage, no commitments or decisions have been made and there can be no assurance that the review will result in any transaction or particular change to the Company’s business. The Company does not intend to make further public comments on the process unless and until it determines that further disclosure is appropriate or necessary.

RESULTS

The consolidated results for the three and six months ended June 30, 2025 and 2024 are as follows:

	For the three months						For the six months
Amounts in thousands, except per share data	ended June 30,					%	ended June 30,					%
Consolidated Results:			2025		2024	Change			2025		2024	Change
Net Operating Revenue		$	150,818	$	146,435	3 %		$	281,261	$	282,451	—
Earnings from operations			16,575		14,261	16 %			23,715		22,547	5 %
Net loss attributable to Century Casinos, Inc. shareholders		$	(12,309)	$	(41,613)	70 %		$	(32,922)	$	(55,157)	40 %

Adjusted EBITDAR**		$	30,304	$	27,448	10 %		$	50,459	$	48,697	4 %

Net loss per share attributable to Century Casinos, Inc. shareholders:
Basic		$	(0.40)	$	(1.36)	71 %		$	(1.08)	$	(1.81)	40 %
Diluted		$	(0.40)	$	(1.36)	71 %		$	(1.08)	$	(1.81)	40 %

RESULTS BY REPORTABLE SEGMENT*

Following is a summary of the changes in net operating revenue by reportable segment for the three and six months ended June 30, 2025, compared to the three and six months ended June 30, 2024:

	Net Operating Revenue
	For the three months							For the six months
Amounts in	ended June 30,					$	%	ended June 30,					$	%
thousands	2025		2024			Change	Change	2025		2024			Change	Change
United States	$	106,104	$	106,515	$	(411)	—	$	199,401	$	202,543	$	(3,142)	(2 %)
Canada		20,005		19,827		178	1 %		36,521		38,153		(1,632)	(4 %)
Poland		24,709		20,093		4,616	23 %		45,339		41,742		3,597	9 %
Corporate and Other		—		—		—	—		—		13		(13)	(100 %)
Consolidated	$	150,818	$	146,435	$	4,383	3 %	$	281,261	$	282,451	$	(1,190)	—

Following is a summary of the changes in earnings (loss) from operations by reportable segment for the three and six months ended June 30, 2025, compared to the three and six months ended June 30, 2024:

	Earnings (Loss) from Operations
	For the three months							For the six months
Amounts in	ended June 30,					$	%	ended June 30,					$	%
thousands	2025		2024			Change	Change	2025		2024			Change	Change
United States	$	14,729	$	14,102	$	627	4 %	$	22,076	$	22,561	$	(485)	(2 %)
Canada		4,533		4,362		171	4 %		7,894		8,398		(504)	(6 %)
Poland		464		(181)		645	356 %		355		(202)		557	276 %
Corporate and Other		(3,151)		(4,022)		871	22 %		(6,610)		(8,210)		1,600	20 %
Consolidated	$	16,575	$	14,261	$	2,314	16 %	$	23,715	$	22,547	$	1,168	5 %

Following is a summary of the changes in net (loss) earnings attributable to Century Casinos, Inc. shareholders by reportable segment for the three and six months ended June 30, 2025, compared to the three and six months ended June 30, 2024:

	Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders
	For the three months							For the six months
Amounts in	ended June 30,					$	%	ended June 30,					$	%
thousands	2025		2024			Change	Change	2025		2024			Change	Change
United States	$	(487)	$	(27,593)	$	27,106	98 %	$	(8,030)	$	(29,137)	$	21,107	72 %
Canada		599		1,009		(410)	(41 %)		533		2,146		(1,613)	(75 %)
Poland		245		(40)		285	713 %		81		(35)		116	331 %
Corporate and Other		(12,666)		(14,989)		2,323	16 %		(25,506)		(28,131)		2,625	9 %
Consolidated	$	(12,309)	$	(41,613)	$	29,304	70 %	$	(32,922)	$	(55,157)	$	22,235	40 %

Items deducted from or added to earnings (loss) from operations to arrive at net (loss) earnings attributable to Century Casinos, Inc. shareholders include interest income, interest expense, gains (losses) on foreign currency transactions and other, income tax (benefit) expense, and non-controlling interests.

Following is a summary of the changes in Adjusted EBITDAR** by reportable segment for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024:

	Adjusted EBITDAR**
	For the three months							For the six months
Amounts in	ended June 30,					$	%	ended June 30,					$	%
thousands	2025		2024			Change	Change	2025		2024			Change	Change
United States	$	25,693	$	25,037	$	656	3 %	$	44,092	$	44,175	$	(83)	—
Canada		5,607		5,451		156	3 %		9,967		10,599		(632)	(6 %)
Poland		1,942		450		1,492	332 %		2,488		1,208		1,280	106 %
Corporate and Other		(2,938)		(3,490)		552	16 %		(6,088)		(7,285)		1,197	16 %
Consolidated	$	30,304	$	27,448	$	2,856	10 %	$	50,459	$	48,697	$	1,762	4 %

BALANCE SHEET AND LIQUIDITY

As of June 30, 2025, the Company had $85.5 million in cash and cash equivalents compared to $84.7 million at March 31, 2025 and $98.8 million at December 31, 2024. Cash and cash equivalents decreased compared to December 31, 2024 primarily due to purchases of property and equipment of $12.5 million. As of June 30, 2025, the Company had $338.1 million in outstanding debt compared to $339.6 million in outstanding debt at December 31, 2024. The outstanding debt as of June 30, 2025 included $335.1 million related to a term loan under the Company’s credit agreement with Goldman Sachs Bank USA (“Goldman”), $0.8 million of bank debt related to Century Resorts Management GmbH (“CRM”) and $2.2 million related to a revolving credit facility related to CasinosPoland (“CPL”). The Company also has a revolving line of credit with Goldman of up to $30.0 million. If the Company has aggregate outstanding revolving loans, swingline loans and letters of credit greater than $10.5 million under the credit agreement with Goldman as of the last day of any fiscal quarter, it is required to maintain a Consolidated First Lien Net Leverage Ratio of 5.50 to 1.00 or less for such fiscal quarter. As of June 30, 2025, the Consolidated First Lien Net Leverage Ratio exceeded 5.50 to 1.00, but the Company had no outstanding revolving loans, swingline loans or letters of credit under the credit agreement with Goldman. The Company also has a $712.9 million long-term financing obligation under its master lease with subsidiaries of VICI Properties, Inc. (the “Master Lease”).

CONFERENCE CALL INFORMATION

Today the Company will post a copy of its quarterly report on Form 10-Q filed with the SEC for the quarter ended June 30, 2025 on its website at www.cnty.com/investor/financials/sec-filings/. The Company will also post its current presentation, which may be used in one or more meetings with current and potential investors from time to time, at the Company’s website under www.cnty.com/investor/presentations/.

The Company will host its second quarter 2025 earnings conference call today, Thursday, August 7, 2025 at 10:00 am EDT / 8:00 am MDT. U.S. domestic participants should dial 888-999-6281. For all international participants, please use 848-280-6550 to dial-in. The conference ID is ‘Casinos‘. Participants may listen to the call live at https://app.webinar.net/3Nkqekp74Vm or obtain a recording of the call on the Company’s website until August 31, 2025 at www.cnty.com/investor/financials/financial-results/.

* Amounts presented are rounded. As such, rounding differences could occur in period over period changes and percentages reported.

** Adjusted EBITDAR and Adjusted EBITDAR margin are Non-US GAAP financial measures. See discussion and reconciliation of Non-US GAAP financial measures in Supplemental Information below.

CENTURY CASINOS, INC. AND SUBSIDIARIES UNAUDITED FINANCIAL INFORMATION – US GAAP BASIS
Condensed Consolidated Statements of Loss
	For the three months					For the six months
	ended June 30,					ended June 30,
Amounts in thousands, except for per share information		2025		2024			2025		2024
Operating revenue:
Net operating revenue		$	150,818	$	146,435		$	281,261	$	282,451
Operating costs and expenses:
Total operating costs and expenses			134,243		132,174			257,546		259,904
Earnings from operations			16,575		14,261			23,715		22,547
Non-operating (expense) income, net			(24,898)		(23,655)			(50,435)		(47,621)
Loss before income taxes			(8,323)		(9,394)			(26,720)		(25,074)
Income tax expense			(1,250)		(29,619)			(1,732)		(25,633)
Net loss			(9,573)		(39,013)			(28,452)		(50,707)
Net earnings attributable to non-controlling interests			(2,736)		(2,600)			(4,470)		(4,450)
Net loss attributable to Century Casinos, Inc. shareholders		$	(12,309)	$	(41,613)		$	(32,922)	$	(55,157)

Net loss per share attributable to Century Casinos, Inc. shareholders:
Basic		$	(0.40)	$	(1.36)		$	(1.08)	$	(1.81)
Diluted		$	(0.40)	$	(1.36)		$	(1.08)	$	(1.81)

Weighted average common shares
Basic			30,565		30,683			30,624		30,551
Diluted			30,565		30,683			30,624		30,551

Condensed Consolidated Balance Sheets
	June 30,		December 31,
Amounts in thousands	2025		2024
Assets
Current assets	$	119,292	$	135,549
Property and equipment, net		916,120		922,146
Other assets		173,039		168,617
Total assets	$	1,208,451	$	1,226,312

Liabilities and Equity
Current liabilities	$	84,230	$	86,044
Non-current liabilities		1,074,022		1,058,264
Century Casinos, Inc. shareholders’ equity (deficit)		(41,493)		(9,300)
Non-controlling interests		91,692		91,304
Total liabilities and equity	$	1,208,451	$	1,226,312

CENTURY CASINOS, INC. AND SUBSIDIARIES UNAUDITED SUPPLEMENTAL INFORMATION
Reconciliation of Adjusted EBITDAR* to Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders by Reportable Segment.
	For the three months ended June 30, 2025
Amounts in thousands			United States		Canada		Poland		Corporate and Other		Total
Net (loss) earnings attributable to Century Casinos, Inc. shareholders		$	(487)	$	599	$	245	$	(12,666)	$	(12,309)
Interest expense (income), net ⁽¹⁾			13,082		3,338		49		9,469		25,938
Income tax expense			223		748		241		38		1,250
Depreciation and amortization			11,010		1,074		741		18		12,843
Net earnings attributable to non-controlling interests			1,840		772		124		—		2,736
Non-cash stock-based compensation			—		—		—		195		195
(Gain) loss on foreign currency transactions, cost recovery income and other ⁽²⁾			—		(922)		(210)		8		(1,124)
Loss (gain) on disposition of fixed assets			25		(2)		11		—		34
Pre-opening and termination expenses			—		—		741		—		741
Adjusted EBITDAR		$	25,693	$	5,607	$	1,942	$	(2,938)	$	30,304


(1)	See “Summary of Interest Expense (Income), Net” below for a breakdown of interest expense (income), net and “Cash Rent Payments” below for more information on the rent payments related to the Master Lease.
(2)	Includes $1.0 million related to cost recovery income for Century Downs Racetrack and Casino (“CDR”) in the Canada segment.


	For the three months ended June 30, 2024
Amounts in thousands			United States		Canada		Poland		Corporate and Other		Total
Net (loss) earnings attributable to Century Casinos, Inc. shareholders		$	(27,593)	$	1,009	$	(40)	$	(14,989)	$	(41,613)
Interest expense (income), net ⁽¹⁾			11,694		3,152		(20)		10,257		25,083
Income tax expense			28,225		456		87		851		29,619
Depreciation and amortization			10,803		1,088		515		43		12,449
Net earnings (loss) attributable to non-controlling interests			1,776		843		(19)		—		2,600
Non-cash stock-based compensation			—		—		—		343		343
(Gain) loss on foreign currency transactions and cost recovery income ⁽²⁾			—		(1,098)		(189)		5		(1,282)
Loss on disposition of fixed assets			132		1		116		—		249
Adjusted EBITDAR		$	25,037	$	5,451	$	450	$	(3,490)	$	27,448


(1)	See “Summary of Interest Expense (Income), Net” below for a breakdown of interest expense (income), net and “Cash Rent Payments” below for more information on the rent payments related to the Master Lease.
(2)	Includes $1.1 million related to cost recovery income for CDR in the Canada segment.

CENTURY CASINOS, INC. AND SUBSIDIARIES UNAUDITED SUPPLEMENTAL INFORMATION
Reconciliation of Adjusted EBITDAR* to Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders by Reportable Segment.
	For the six months ended June 30, 2025
Amounts in thousands			United States		Canada		Poland		Corporate and Other		Total
Net (loss) earnings attributable to Century Casinos, Inc. shareholders		$	(8,030)	$	533	$	81	$	(25,506)	$	(32,922)
Interest expense (income), net ⁽¹⁾			26,189		6,546		91		18,768		51,594
Income tax expense			223		964		331		214		1,732
Depreciation and amortization			22,016		2,073		1,111		36		25,236
Net earnings attributable to non-controlling interests			3,623		805		42		—		4,470
Non-cash stock-based compensation			—		—		—		486		486
Gain on foreign currency transactions, cost recovery income and other ⁽²⁾			—		(952)		(205)		(86)		(1,243)
Loss (gain) on disposition of fixed assets			71		(2)		15		—		84
Pre-opening and termination expenses			—		—		1,022		—		1,022
Adjusted EBITDAR		$	44,092	$	9,967	$	2,488	$	(6,088)	$	50,459


(1)	See “Summary of Interest Expense (Income), Net” below for a breakdown of interest expense (income), net and “Cash Rent Payments” below for more information on the rent payments related to the Master Lease.
(2)	Includes $1.0 million related to cost recovery income for CDR in the Canada segment.


	For the six months ended June 30, 2024
Amounts in thousands			United States		Canada		Poland		Corporate and Other		Total
Net (loss) earnings attributable to Century Casinos, Inc. shareholders		$	(29,137)	$	2,146	$	(35)	$	(28,131)	$	(55,157)
Interest expense (income), net ⁽¹⁾			23,440		6,061		(55)		20,765		50,211
Income tax expense (benefit)			24,705		1,184		238		(494)		25,633
Depreciation and amortization			21,093		2,237		1,053		97		24,480
Net earnings (loss) attributable to non-controlling interests			3,553		914		(17)		—		4,450
Non-cash stock-based compensation			—		—		—		846		846
Gain on foreign currency transactions, cost recovery income and other ⁽²⁾			—		(1,907)		(333)		(350)		(2,590)
Loss (gain) on disposition of fixed assets			521		(36)		357		1		843
Acquisition costs			—		—		—		(19)		(19)
Adjusted EBITDAR		$	44,175	$	10,599	$	1,208	$	(7,285)	$	48,697


(1)	See “Summary of Interest Expense (Income), Net” below for a breakdown of interest expense (income), net and “Cash Rent Payments” below for more information on the rent payments related to the Master Lease.
(2)	Includes $1.1 million related to cost recovery income for CDR in the Canada segment.

CENTURY CASINOS, INC. AND SUBSIDIARIES UNAUDITED SUPPLEMENTAL INFORMATION
Reconciliation of Caruthersville Adjusted EBITDAR* to Net Earnings Attributable to Century Casinos, Inc. Shareholders.

Amounts in thousands		Q4 2024 ⁽¹⁾		Q1 2025		Q2 2025		Total
Net earnings attributable to Century Casinos, Inc. shareholders	$	1,070	$	1,497	$	1,185	$	3,752
Interest expense (income), net		1,906		3,051		3,165		8,122
Income tax expense		129		—		223		352
Depreciation and amortization		869		1,508		1,512		3,889
Loss on disposition of fixed assets		3		—		23		26
Adjusted EBITDAR	$	3,977	$	6,056	$	6,108	$	16,141

Amounts in thousands		Q4 2023 ⁽²⁾		Q1 2024		Q2 2024		Total
Net earnings (loss) attributable to Century Casinos, Inc. shareholders	$	436	$	1,468	$	(1,375)	$	529
Interest expense (income), net		1,277		1,928		1,849		5,054
Income tax expense		261		494		3,053		3,808
Depreciation and amortization		691		1,046		1,063		2,800
Loss on disposition of fixed assets		20		3		116		139
Adjusted EBITDAR	$	2,685	$	4,939	$	4,706	$	12,330

(1) Results for November 1, 2024 to December 31, 2024.

(2) Results for November 1, 2023 to December 31, 2023.

Net Earnings (Loss) Margins and Adjusted EBITDAR Margins*
			For the three months				For the six months
			ended June 30,				ended June 30,
			2025		2024		2025		2024
United States	Net Operating Revenue	$	106,104	$	106,515	$	199,401	$	202,543
	Net Earnings (Loss) Margin		(1 %)		(26 %)		(4 %)		(14 %)
	Adjusted EBITDAR Margin		24 %		24 %		22 %		22 %
Canada	Net Operating Revenue	$	20,005	$	19,827	$	36,521	$	38,153
	Net Earnings (Loss) Margin		3 %		5 %		2 %		6 %
	Adjusted EBITDAR Margin		28 %		28 %		27 %		28 %
Poland	Net Operating Revenue	$	24,709	$	20,093	$	45,339	$	41,742
	Net Earnings (Loss) Margin		1 %		—		—		—
	Adjusted EBITDAR Margin		8 %		2 %		6 %		3 %
Corporate and Other	Net Operating Revenue	$	—	$	—	$	—	$	13
	Net Earnings (Loss) Margin		NM ⁽¹⁾		NM		NM		NM
	Adjusted EBITDAR Margin		NM		NM		NM		NM
Consolidated	Net Operating Revenue	$	150,818	$	146,435	$	281,261	$	282,451
	Net Earnings (Loss) Margin		(8 %)		(28 %)		(12 %)		(20 %)
	Adjusted EBITDAR Margin		20 %		19 %		18 %		17 %

(1) Not meaningful.

CENTURY CASINOS, INC. AND SUBSIDIARIES UNAUDITED SUPPLEMENTAL INFORMATION
Summary of Interest Expense (Income), Net
	For the three months					For the six months
	ended June 30,					ended June 30,
Amounts in thousands			2025		2024			2025		2024
Interest income		$	(273)	$	(673)		$	(653)	$	(1,359)
Interest expense – Credit Agreements			8,864		9,821			17,656		19,720
Interest expense – Master Lease Financing Obligation			16,494		15,175			32,896		30,374
Interest expense – Deferred Financing Costs			674		674			1,348		1,348
Interest expense – Miscellaneous			179		86			347		128
Interest expense (income), net		$	25,938	$	25,083		$	51,594	$	50,211

Cash Rent Payments
	For the three months					For the six months
	ended June 30,					ended June 30,
Amounts in thousands			2025		2024			2025		2024
Master Lease		$	14,404	$	15,195		$	28,731	$	24,639
Nugget Lease ⁽¹⁾			1,936		1,913			3,849		3,175


(1)	Represents payments with respect to the 50% interest in the Nugget Lease owned by Marnell Gaming, LLC through Smooth Bourbon, LLC (“Smooth Bourbon”), a 50% owned subsidiary of the Company that owns the real estate assets underlying the Nugget Casino Resort.

The table below shows the Company’s reporting units and operating segments that are included in each of the Company’s reportable segments as of June 30, 2025.

Reportable Segment	Operating Segment	Reporting Unit
United States	East	Mountaineer Casino, Resort & Races
		Rocky Gap Casino, Resort & Golf
	Midwest	Century Casino & Hotel Central City
		Century Casino & Hotel Cripple Creek
		Century Casino & Hotel Cape Girardeau and The Riverview
		Century Casino & Hotel Caruthersville and The Farmstead
	West	Nugget Casino Resort and Smooth Bourbon, LLC
Canada	Canada	Century Casino & Hotel Edmonton
		Century Casino St. Albert
		Century Mile Racetrack and Casino
		Century Downs Racetrack and Casino
Poland	Poland	Casinos Poland
Corporate and Other	Corporate and Other	Corporate Other

CENTURY CASINOS, INC. AND SUBSIDIARIES

UNAUDITED SUPPLEMENTAL INFORMATION

* We define Adjusted EBITDAR as net earnings (loss) attributable to Century Casinos, Inc. shareholders before interest expense (income) (including interest expense related to the Master Lease), net, income taxes (benefit), depreciation, amortization, non-controlling interests net earnings (losses) and transactions, pre-opening expenses, termination expenses related to closing a casino, acquisition costs, non-cash stock-based compensation charges, asset impairment costs, loss (gain) on disposition of fixed assets, discontinued operations, (gain) loss on foreign currency transactions, cost recovery income and other, gain on business combination and certain other one-time transactions. The Master Lease is accounted for as a financing obligation. As such, a portion of the periodic payment under the Master Lease is recognized as interest expense with the remainder of the payment impacting the financing obligation using the effective interest method. Intercompany transactions consisting primarily of management and royalty fees and interest, along with their related tax effects, are excluded from the presentation of net earnings (loss) attributable to Century Casinos, Inc. shareholders and Adjusted EBITDAR reported for each segment. Not all of the aforementioned items occur in each reporting period, but have been included in the definition based on historical activity. These adjustments have no effect on the consolidated results as reported under GAAP.

Adjusted EBITDAR is used outside of our financial statements solely as a valuation metric and is not considered a measure of performance recognized under GAAP. Adjusted EBITDAR is an additional metric used by analysts in valuing gaming companies subject to triple net leases such as our Master Lease since it eliminates the effects of variability in leasing methods and capital structures. This metric is included as supplemental disclosure because (i) we believe Adjusted EBITDAR is used by gaming operator analysts and investors to determine the equity value of gaming operators and (ii) financial analysts refer to Adjusted EBITDAR when valuing our business. We believe Adjusted EBITDAR is useful for equity valuation purposes because (i) its calculation isolates the effects of financing real estate, and (ii) using a multiple of Adjusted EBITDAR to calculate enterprise value allows for an adjustment to the balance sheet to recognize estimated liabilities arising from operating leases related to real estate.

Adjusted EBITDAR should not be construed as an alternative to net earnings (loss) attributable to Century Casinos, Inc. shareholders, the most directly comparable GAAP measure, as indicators of our performance. In addition, consolidated Adjusted EBITDAR also should not be viewed as a measure of overall operating performance or considered in isolation or as an alternative to net earnings (loss) attributable to Century Casinos, Inc. shareholders, because it excludes the rent expense associated with our Master Lease and several other items. Adjusted EBITDAR as used by us may not be defined in the same manner as other companies in our industry, and, as a result, may not be comparable to similarly titled non-GAAP financial measures of other companies.

** We define net earnings (loss) margin as net earnings (loss) attributable to Century Casinos, Inc. shareholders divided by net operating revenue.

*** We define Adjusted EBITDAR margin as Adjusted EBITDAR divided by net operating revenue. Adjusted EBITDAR margins are a non-US GAAP measure. Management uses these margins as one of several measures to evaluate the efficiency of our casino operations.

CENTURY CASINOS, INC. AND SUBSIDIARIES

UNAUDITED SUPPLEMENTAL INFORMATION

ABOUT CENTURY CASINOS, INC.:

Century Casinos, Inc. is a casino entertainment company. In the United States the Company operates the following operating segments: (i) in the East, the Mountaineer Casino, Resort & Races in New Cumberland, West Virginia and Rocky Gap Casino, Resort & Golf in Flintstone, Maryland; (ii) in the Midwest, the Century Casinos & Hotels Cape Girardeau and Caruthersville in Missouri, and Century Casinos & Hotels in Cripple Creek and Central City, Colorado; and (iii) in the West, the Nugget Casino Resort, in Reno–Sparks, Nevada. In Alberta, Canada, the Company operates Century Casino & Hotel in Edmonton, the Century Casino in St. Albert, Century Mile Racetrack and Casino in Edmonton and CDR in Calgary. In Poland, the Company operates five casinos through its subsidiary Casinos Poland Ltd. The Company continues to pursue other projects in various stages of development.

Century Casinos‘ common stock trades on The Nasdaq Capital Market® under the symbol CNTY. For more information about Century Casinos, visit our website at www.cnty.com.

FORWARD-LOOKING STATEMENTS, BUSINESS ENVIRONMENT AND RISK FACTORS

This release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of the management of Century Casinos based on information currently available to management. Such forward-looking statements include, but are not limited to, statements regarding our strategic review process and the results thereof, the commencement of sports betting in Missouri, our agreement with BetMGM and any expected benefits thereto, our recently opened Caruthersville land-based casino and hotel, licensing and opening of our Polandcasinos, expectations for our Poland segment moving forward, the Goldman credit agreement and obligations under our Master Lease and our ability to repay our debt and other obligations, outcomes of legal proceedings, changes in our tax provisions or exposure to additional income tax liabilities, and plans for our casinos and our Company, including expectations regarding 2025 and later results. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, among others, the risks described in the section entitled “Risk Factors” under Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2024, and in subsequent periodic and current SEC filings we may make. Century Casinos disclaims any obligation to revise or update any forward-looking statement that may be made from time to time by it or on its behalf.

View original content to download multimedia:https://www.prnewswire.com/news-releases/century-casinos-inc-announces-second-quarter-2025-results-302523797.html

SOURCE Century Casinos, Inc.

August 7, 2025 6:05 am

Realtor.com®: Price Premium for New Construction Hits All-Time Low

PR Newswire

Pandemic new construction hot spots Austin, Texas; Jacksonville, Fla.; and Cape Coral, Fla., see price declines of -8.5%, -7.8% and -7.4%, respectively

AUSTIN, Texas
, Aug. 7, 2025 /PRNewswire/ — New construction is becoming a more affordable, and increasingly attractive, option for today’s buyers as the price premium over existing homes hit a record low of 7.8% in Q2 2025. According to the latest Realtor.com^®New Construction Quarterly Report, newly built homes are not only more plentiful than they’ve been in recent years, but also offer better value on a per-square-foot basis than existing homes, especially in the South where supply is rebounding fastest.

“In a market still grappling with a shortage of nearly 4 million homes, affordable new construction plays a critical role in restoring balance. Even with recent slowdowns in starts and permits, builders continue to deliver new homes to the market at a healthy pace,” said Realtor.com^® Chief Economist Danielle Hale. “In many areas, these homes are not only available, they also offer better value compared to existing home inventories. We’re even seeing new home price declines in some of the most active pandemic-era hot spots, signaling a shift toward greater affordability in markets that were previously out of reach for many.”

New construction premium hits all-time low

In Q2 2025, the price premium for new construction compared to existing homes dropped to a record low of 7.8%, as builders held pricing steady and existing home prices continued to rise. The median list price for a newly built home was $450,797 in Q2, essentially flat from a year ago, while the median existing home prices rose 2.4% to $418,300. New homes also tend to be larger, offering better value per square foot. Nationally, new builds averaged $218.66 per square foot, compared to $226.56 for existing homes.

The affordability edge is strongest in the South and West, where new homes make up a greater share of for-sale listings. While three U.S. regions saw a shrinking price premium, the West, which offers relatively lower new construction prices compared to the other regions, was the only region where the new-home premium rose year over year – a reflection of strengthening new home prices and an influx of lower-priced existing homes.

Prices fall in 30 metros, with sharpest drops in the South

Locally, new build list prices declined in 30 of the 100 largest metros, with the steepest declines in the South, where inventory is high and demand has cooled. The top five markets seeing the biggest drops in new construction list prices are Little Rock, Ark. (-15.6%); Austin, Texas (-8.5%); Wichita, Kan. (-7.9%); Jacksonville, Fla. (-7.8%); and Cape Coral, Fla. (-7.4%). These price drops are from a combination of factors: builder efforts to offer more affordable options, rising competition from existing homes, and weaker buyer demand from high mortgage rates and low buyer confidence.

South leads in new home inventory

The South continues to lead the nation in housing supply, accounting for more than 50% of both new and existing home listings – outpacing its 39.4% share of U.S. households. It’s also the only region where its share of new builds exceeds its share of existing homes for sale, thanks to high levels of builder activity. In contrast, the Northeast remains the most inventory-constrained region, with a significant shortage of both existing and new construction homes for its 17.1% share of U.S. households.

In the Midwest and Northeast, tighter inventories and high demand have pushed new build prices well above existing homes, more than 50% higher in many cases, making new construction largely a premium product in those regions.

Builder activity softens amid tariff and demand concerns, completions stay strong

While builder activity has softened amid tariff concerns and the threats of lower demand and higher material costs, completions have continued to hit the market at a steady rate since the pandemic, as builders stepped in to meet elevated housing demand. Since Q1 2020, new construction listings have grown 37.3%, compared to a 15.4% increase for existing homes, most of which occurred in the past quarter. That influx of existing home listings has diluted the overall share of new homes for sale on the market, now down to 16.4% in Q2, from its quarterly high of 20.2% in 2023 Q2, and 17.9% a year ago.

Who’s shopping for new builds, and where

Realtor.com^®cross-market demand data shows differences in buyer shopping behavior for new builds across markets. In major metros like Los Angeles, New York and Miami, demand is largely driven by out-of-town buyers. In contrast, middle-tier cities such as Tucson, Ariz.; Toledo, Ohio; and Bakersfield, Calif., see the majority of new construction interest coming from local shoppers.

Meanwhile, new home shoppers in construction rich areas, like Durham, N.C.; Atlanta, and Salt Lake City are more likely to seek out new construction even when searching outside their own metro area. This suggests that once consumers see or experience the benefits of new builds in their local market, they actively look for similar options elsewhere.

Methodology

Realtor.com^® housing data as of June 2025. Listings include the active inventory of newly built single-family homes and condos/townhomes/row homes/co-ops for the given level of geography on Realtor.com^®. Realtor.com^® data history goes back to July 2016. Cross market data includes all views of listing detail pages on Realtor.com^® during the second quarter of 2025.

About Realtor.com^®

Realtor.com^® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com^® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media Contact: Sara Wiskerchen, [email protected]

View original content:https://www.prnewswire.com/news-releases/realtorcom-price-premium-for-new-construction-hits-all-time-low-302524107.html

SOURCE Realtor.com

August 7, 2025 6:05 am

Perimeter Solutions Reports Second Quarter 2025 Financial Results

Second
quarter Net Loss of $32.2M and Adjusted Net Income of $57.1M

Continued value driver execution and normalized fire activity drove second quarter Adjusted EBITDA of $91.3M

Second quarter Loss Per Diluted Share of $0.22 and Adjusted Earnings Per Diluted Share of $0.39

CLAYTON, Mo., Aug. 07, 2025 (GLOBE NEWSWIRE) — Perimeter Solutions, Inc. (NYSE: PRM) (“Perimeter,” “Perimeter Solutions,” or the “Company”), a leading global solutions provider for the Fire Safety and Specialty Products industries, today reported financial results for its second quarter ended June 30, 2025.

Second Quarter 2025 Results

Net sales increased 28% to $162.6 million in the second quarter, as compared to $127.3 million in the prior-year quarter.
- Fire Safety net sales increased 22% to $120.3 million, as compared to $98.5 million in the prior year quarter.
- Specialty Products net sales increased 47% to $42.4 million, as compared to $28.7 million in the prior year quarter.
Net loss during the second quarter was $32.2 million, or $0.22 loss per diluted share, as compared to net income of $21.7 million, or $0.14 earnings per diluted share in the prior year quarter.
Second quarter non-GAAP adjusted earnings per share was $0.39, as compared to adjusted earnings per share of $0.25 in the prior year quarter.
Adjusted EBITDA increased 41% to $91.3 million in the second quarter, as compared to $64.9 million in the prior year quarter.
- Fire Safety Segment Adjusted EBITDA increased 40% to $77.7 million, as compared to $55.6 million in the prior year quarter.
- Specialty Products Segment Adjusted EBITDA increased 48% to $13.7 million, as compared to $9.3 million in the prior year quarter.
Reconciliation tables for non-GAAP measures are available in the attached schedules.

Year-to Date
2025
Results

Net sales increased 26% to $234.7 million during the year-to-date period, as compared to $186.3 million in the prior-year period.
- Fire Safety sales increased 27% to $157.4 million , as compared to $123.7 million in the prior year period.
- Specialty Products sales increased 23% to $77.2 million, as compared to $62.6 million in the prior year period.
Net income during the year-to-date period was $24.5 million, or $0.16 earnings per diluted share, as compared to a net loss of $60.9 million, or $0.42 loss per diluted share in the prior year period.
Non-GAAP adjusted earnings per share during the year-to-date period was $0.41, as compared to adjusted earnings per share of $0.23 in the prior year period.
Adjusted EBITDA increased 42% to $109.4 million in the year-to-date period, as compared to $77.0 million in the prior year period.
- Fire Safety Segment Adjusted EBITDA increased 58% to $87.7 million, as compared to $55.4 million in the prior year period.
- Specialty Products Segment Adjusted EBITDA of $21.7 million was relatively flat, as compared to $21.6 million in the prior year period.

Capital Allocation

The Company repurchased 2.9 million shares of Common Stock at an average price of $11.13 per share during the quarter ended June 30, 2025.
In May 2025, the Company settled its trade secret litigation with a subsidiary of Compass Minerals International, Inc., and simultaneously acquired related assets for $20 million in cash.

Conference Call and Webcast

As previously announced, Perimeter Solutions management will hold a conference call at 8:30 a.m. ET on Thursday, August 7, 2025 to discuss financial results for the second quarter 2025. The conference call can be accessed by dialing (877) 407-9764 (toll-free) or (201) 689-8551 (toll).

The conference call will also be webcast simultaneously on Perimeter’s website (https://ir.perimeter-solutions.com), accessed under the Investor Relations page. The webcast link will be made available on the Company’s website prior to the start of the call; go to the investor relations page of our website to the News & Events menu and click on “Events & Presentations.”

A slide presentation will also be available for reference during the conference call; go to the investor relations page of our website to the News & Events menu and click on “Events & Presentations.”

Following the live webcast, a replay will be available on the Company’s website. A telephonic replay will also be available approximately three hours after the call and can be accessed by dialing (877) 660-6853 (toll-free) or (201) 612-7415 (toll) and using Access ID “13754057”. The telephonic replay will be available until September 6, 2025 (11:59 p.m. ET).

About Perimeter Solutions

Perimeter Solutions is a leading global solutions provider for the Fire Safety and Specialty Products industries. The Company’s business is organized and managed in two reporting segments: Fire Safety and Specialty Products.

The Fire Safety segment is a formulator and manufacturer of fire management products that help our customers combat various types of fires, including wildland, structural, flammable liquids and other types of fires. Our Fire Safety segment also offers specialized equipment and services, typically in conjunction with our fire management products to support our customers’ firefighting operations. Our specialized equipment includes airbase retardant storage, mixing, and delivery equipment; mobile retardant bases; retardant ground application units; mobile foam equipment; and equipment that we custom design and manufacture to meet specific customer needs. Our service network can meet the emergency resupply needs of approximately 150 air tanker bases in North America, as well as many other customer locations globally. The segment is built on the premise of superior technology, exceptional responsiveness to our customers’ needs, and a “never-fail” service network. The segment sells products to government agencies and commercial customers around the world.

The Specialty Products segment includes operations that develop, produce and market products for non-fire safety markets. The Company’s largest end market application for our Specialty Products segment is Phosphorus Pentasulfide (“P₂S₅”) based lubricant additives. P₂S₅ is also used in pesticide and mining chemicals applications and emerging electric battery technologies. The Specialty Products segment also includes Intelligent Manufacturing Solutions (“IMS”), which is a manufacturer of electronic or electro-mechanical components of larger solutions. IMS has a flexible, vertically integrated production facility centered on its printed circuit board (“PCB”) line that allows it to acquire and produce a variety of product lines across a range of end markets, including large medical systems, communications infrastructure, energy infrastructure, defense systems, and industrial systems, with a substantial focus on aftermarket repair and replacement.

Forward-looking Information

This press release may contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will,” and similar references to future periods.

Any such forward-looking statements are not guarantees of performance or results, and involve risks, uncertainties (some of which are beyond the Company’s control) and assumptions. Although Perimeter believes any forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect the Company’s actual financial results and cause them to differ materially from those anticipated in any forward-looking statements, including the risk factors described from time to time by us in our filings with the Securities and Exchange Commission (“SEC”), including, but not limited to, the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Stockholders, potential investors and other readers should consider these factors carefully in evaluating the forward-looking statements.

Any forward-looking statement made by Perimeter in this press release speaks only as of the date on which it is made. Perimeter undertakes no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

CONTACT: [email protected]

PERIMETER SOLUTIONS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income
(in thousands, except share and per share data)
(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
		2025			2024			2025			2024
Net sales	$	162,639		$	127,276		$	234,669		$	186,320
Cost of goods sold		61,143			54,009			105,020			92,351
Gross profit		101,496			73,267			129,649			93,969
Operating expenses:
Selling, general and administrative expense		15,967			13,906			32,266			27,368
Amortization expense		14,604			13,755			28,703			27,526
Founders advisory fees – related party		96,883			588			16,270			68,921
Other operating expense		268			—			829			—
Total operating expenses		127,722			28,249			78,068			123,815
Operating (loss) income		(26,226	)		45,018			51,581			(29,846	)
Other expense (income):
Interest expense, net		9,930			10,590			19,574			21,238
Foreign currency (gain) loss		(2,096	)		224			(3,255	)		1,517
Other (income) expense, net		(212	)		74			(69	)		101
Total other expense, net		7,622			10,888			16,250			22,856
(Loss) income before income taxes		(33,848	)		34,130			35,331			(52,702	)
Income tax benefit (expense)		1,687			(12,480	)		(10,806	)		(8,206	)
Net (loss) income		(32,161	)		21,650			24,525			(60,908	)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		24,120			(989	)		32,005			(6,532	)
Total comprehensive (loss) income	$	(8,041	)	$	20,661		$	56,530		$	(67,440	)
(Loss) earnings per share:
Basic	$	(0.22	)	$	0.15		$	0.17		$	(0.42	)
Diluted	$	(0.22	)	$	0.14		$	0.16		$	(0.42	)
Weighted average number of shares outstanding:
Basic		147,055,804			145,236,526			147,779,470			145,279,938
Diluted		147,055,804			154,664,770			156,039,133			145,279,938

PERIMETER SOLUTIONS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except share data)

	June 30, 2025			December 31, 2024
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	140,658		$	198,456
Accounts receivable, net		121,416			56,048
Inventories		150,049			116,347
Prepaid expenses and other current assets		7,956			23,173
Total current assets		420,079			394,024
Property, plant and equipment, net		78,831			64,777
Operating lease right-of-use assets		30,755			17,298
Finance lease right-of-use assets		6,084			6,173
Goodwill		1,053,108			1,034,543
Customer lists, net		624,787			637,745
Technology and patents, net		186,494			173,307
Tradenames, net		85,482			87,365
Other assets, net		642			1,162
Total assets	$	2,486,262		$	2,416,394
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	35,902		$	23,519
Accrued expenses and other current liabilities		31,834			30,450
Founders advisory fees payable – related party		16,046			6,677
Deferred revenue		20,182			1,842
Total current liabilities		103,964			62,488
Long-term debt, net		668,439			667,774
Operating lease liabilities, net of current portion		28,619			15,540
Finance lease liabilities, net of current portion		5,938			6,013
Deferred income taxes		142,860			152,203
Founders advisory fees payable – related party		240,307			240,083
Preferred stock		112,286			109,966
Preferred stock – related party		2,711			2,831
Other non-current liabilities		2,507			2,226
Total liabilities		1,307,631			1,259,124
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.0001 par value per share, 4,000,000,000 shares authorized; 171,292,585 and 169,426,114 shares issued; 145,914,429 and 147,822,633 shares outstanding at June 30, 2025 and December 31, 2024, respectively		17			17
Treasury stock, at cost; 25,378,156 and 21,603,481 shares at June 30, 2025 and December 31, 2024, respectively		(168,197	)		(127,827	)
Additional paid-in capital		1,916,236			1,911,035
Accumulated other comprehensive loss		(7,227	)		(39,232	)
Accumulated deficit		(562,198	)		(586,723	)
Total stockholders’ equity		1,178,631			1,157,270
Total liabilities and stockholders’ equity	$	2,486,262		$	2,416,394

PERIMETER SOLUTIONS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)

	Six Months Ended June 30,
		2025			2024
Cash flows from operating activities:
Net income (loss)	$	24,525		$	(60,908	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Founders advisory fees – related party (change in fair value)		16,270			68,921
Depreciation and amortization expense		34,817			32,771
Interest and payment-in-kind on preferred shares		3,666			3,528
Stock-based compensation		4,909			4,736
Non-cash lease expense		2,913			2,622
Deferred income taxes		(11,293	)		(4,756	)
Amortization of deferred financing costs		890			856
Foreign currency (gain) loss		(3,255	)		1,517
Loss on disposal of assets		6			9
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		(63,460	)		(57,319	)
Inventories		(21,834	)		2,681
Prepaid expenses and current other assets		4,687			(126	)
Accounts payable		12,003			277
Deferred revenue		18,340			7,927
Income taxes payable, net		7,962			8,635
Accrued expenses and other current liabilities		(763	)		5,237
Founders advisory fees – related party (cash settled)		(6,677	)		(2,702	)
Operating lease liabilities		(1,998	)		(1,629	)
Finance lease liabilities		(251	)		(262	)
Other, net		(563	)		(597	)
Net cash provided by operating activities		20,894			11,418
Cash flows from investing activities:
Purchase of property and equipment		(17,577	)		(5,196	)
Purchase of intangible assets		(15,226	)		—
Proceeds from short-term investments		—			5,383
Purchase of businesses, net of cash acquired		(10,000	)		—
Net cash (used in) provided by investing activities		(42,803	)		187
Cash flows from financing activities:
Common stock repurchased		(40,370	)		—
Ordinary shares repurchased		—			(14,417	)
Proceeds from exercise of options		292			—
Principal payments on finance lease obligations		(482	)		(367	)
Net cash used in financing activities		(40,560	)		(14,784	)
Effect of foreign currency on cash and cash equivalents		4,671			(935	)
Net change in cash and cash equivalents		(57,798	)		(4,114	)
Cash and cash equivalents, beginning of period		198,456			47,276
Cash and cash equivalents, end of period	$	140,658		$	43,162
Supplemental disclosures of cash flow information:
Cash paid for interest	$	19,698		$	17,153
Cash paid for income taxes	$	12,844		$	4,448

Non-GAAP Financial Metrics

The Company provides non-GAAP financial measures for Segment Adjusted EBITDA, Adjusted Net Income, and Adjusted Earnings Per Share data as supplemental information regarding the Company’s business performance. The Company believes that these non-GAAP financial measures are useful to investors because they provide investors with a better understanding of the Company’s past financial performance and future results. The Company’s management uses these non-GAAP financial measures when it internally evaluates the performance of its business and makes operating decisions, including internal operating budgeting, performance measurement, and discretionary compensation.

Adjusted EBITDA

Adjusted EBITDA is defined as (loss) income before income taxes plus net interest and other financing expenses, and depreciation and amortization, adjusted on a consistent basis for certain non-recurring, unusual or non-operational items. These items include (i) restructuring and transaction related costs (ii) founder advisory fee expenses, (iii) stock-based compensation expenses and (iv) foreign currency (gain) loss. To supplement the Company’s condensed consolidated financial statements presented in accordance with U.S. GAAP, Perimeter is providing a summary to show the computations of Adjusted EBITDA, which is a non-GAAP measure used by the Company’s management and by external users of Perimeter’s financial statements, such as debt and equity investors, commercial banks and others, to assess the Company’s operating performance as compared to that of other companies, without regard to financing methods, capital structure or historical cost basis. Adjusted EBITDA should not be considered an alternative to net (loss) income, operating (loss) income, cash flows provided by operating activities or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP (in thousands).

(Unaudited)	Three Months Ended June 30, 2025									Three Months Ended June 30, 2024
	Fire Safety			Specialty Products			Total			Fire Safety			Specialty Products		Total
(Loss) income before income taxes	$	(27,068	)	$	(6,780	)	$	(33,848	)	$	30,377		$	3,753	$	34,130
Depreciation and amortization		13,620			4,304			17,924			12,798			3,561		16,359
Interest and financing expense		6,180			3,750			9,930			9,897			693		10,590
Founders advisory fees – related party		83,319			13,564			96,883			507			81		588
Non-recurring expenses ⁽¹⁾		123			184			307			14			9		23
Stock-based compensation expense		2,007			231			2,238			2,067			927		2,994
Foreign currency (gain) loss		(522	)		(1,574	)		(2,096	)		(21	)		245		224
Segment Adjusted EBITDA	$	77,659		$	13,679		$	91,338		$	55,639		$	9,269	$	64,908

^{(1) For the three months ended June 30, 2025, $0.2 million was related to acquisition costs and $0.1 million was related to other non-recurring costs.}

(Unaudited)	Six Months Ended June 30, 2025									Six Months Ended June 30, 2024
	Fire Safety			Specialty Products			Total			Fire Safety			Specialty Products		Total
Income (loss) before income taxes	$	31,810		$	3,521		$	35,331		$	(54,034	)	$	1,332	$	(52,702	)
Depreciation and amortization		26,385			8,432			34,817			25,688			7,083		32,771
Interest and financing expense		12,134			7,440			19,574			20,011			1,227		21,238
Founders advisory fees – related party		13,992			2,278			16,270			59,273			9,648		68,921
Non-recurring expenses ⁽¹⁾		357			1,418			1,775			389			174		563
Stock-based compensation expense		3,583			1,326			4,909			3,516			1,220		4,736
Foreign currency (gain) loss		(517	)		(2,738	)		(3,255	)		555			962		1,517
Segment Adjusted EBITDA	$	87,744		$	21,677		$	109,421		$	55,398		$	21,646	$	77,044

^{(1) For the six months ended June 30, 2025, $0.8 million was related to acquisition costs, $0.4 million was related to the Redomiciliation Transaction and $0.6 million was related to restructuring and other non-recurring costs. For the six months ended June 30, 2024, $0.5 million was related to the Redomiciliation Transaction and other non-recurring Luxembourg related costs, and $0.1 million was related to other non-recurring costs.}

Adjusted Net Income and Adjusted Earnings Per Share

The computation of Adjusted Earnings Per Share (“Adjusted EPS”) is defined as Adjusted Net Income divided by adjusted diluted shares. Adjusted Net Income is defined as net (loss) income plus amortization, certain non-recurring, unusual or non-operational items, and the tax impact of these non-GAAP adjustments. These adjustments include (i) restructuring and transaction related costs (ii) founder advisory fee expenses, (iii) stock-based compensation expenses and (iv) foreign currency (gain) loss. Adjusted diluted shares is the weighted average diluted shares outstanding, adjusted by adding dilution for options and warrants excluded under U.S. GAAP due to a net loss, less dilution related to founders advisory fees. To supplement the Company’s condensed consolidated financial statements presented in accordance with U.S. GAAP, Perimeter is providing a summary to show the computations of Adjusted Net Income and Adjusted EPS, which are non-GAAP measures used by the Company’s management and by external users of Perimeter’s financial statements, such as debt and equity investors, commercial banks and others, to assess the Company’s operating performance as compared to that of other companies, without regard to financing methods, capital structure or historical cost basis. Adjusted EPS and Adjusted Net Income should not be considered alternatives to GAAP (loss) earnings per share (“GAAP EPS”), net (loss) income, operating (loss) income, cash flows provided by operating activities or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP (in thousands, except share and per share data).

(Unaudited)				Three Months Ended June 30,
					2025			2024
GAAP net (loss) income				$	(32,161	)	$	21,650
		Adjustments:
			Amortization		14,604			13,755
			Founders advisory fees – related party		96,883			588
			Non-recurring expenses ⁽¹⁾		307			23
			Stock-based compensation expense		2,238			2,994
			Foreign currency (gain) loss		(2,096	)		224
			Tax impact of non-GAAP adjustments ⁽²⁾		(22,631	)		(3,441	)
Adjusted Net Income				$	57,144		$	35,793

Shares used in computing GAAP Earnings Per Share (diluted)					147,055,804			154,664,770
		Options⁽³⁾			1,276,730			—
		Warrants ⁽³⁾			—			—
		Shares underlying Founders fixed advisory fees ⁽⁴⁾			—			(9,428,244	)
		Shares underlying Founders variable advisory fees ⁽⁵⁾			—			—
Shares used in computing Adjusted Earnings Per Share (diluted)					148,332,534			145,236,526

GAAP (Loss) Earnings Per Share (diluted)				$	(0.22	)	$	0.14
Adjusted Earnings Per Share (diluted)				$	0.39		$	0.25
____________________

⁽¹	⁾	^{For the three months ended June 30, 2025, $0.2 million was related to acquisition costs and $0.1 million was related to other non-recurring costs.}
⁽²	⁾	^{The tax impact of non-GAAP adjustments reflects the total income tax expense commensurate with the non-GAAP measure of profitability.}
⁽³	⁾	^{The Company adds back the dilutive impact of options and warrants if amounts were excluded for purposes of GAAP EPS due to a GAAP net loss during the period.}
⁽⁴	⁾	^{As of June 30, 2025 and 2024, a maximum of 2.4 million shares were expected to be issued within 12 months under the Founders fixed advisory fee.}
⁽⁵	⁾	^{Based on period end market prices, no shares were issuable under the Founders variable advisory fee.}

(Unaudited)				Six Months Ended June 30,
					2025			2024
GAAP net income (loss)				$	24,525		$	(60,908	)
		Adjustments:
			Amortization		28,703			27,526
			Founders advisory fees – related party		16,270			68,921
			Non-recurring expenses ⁽¹⁾		1,775			563
			Stock-based compensation expense		4,909			4,736
			Foreign currency (gain) loss		(3,255	)		1,517
			Tax impact of non-GAAP adjustments⁽²⁾		(11,694	)		(8,632	)
Adjusted net income				$	61,233		$	33,723

Shares used in computing GAAP Earnings Per Share (diluted)					156,039,133			145,279,938
		Options⁽³⁾			—			—
		Warrants⁽³⁾			—			—
		Shares underlying Founders fixed advisory fees ⁽⁴⁾			(7,071,183	)		—
		Shares underlying Founders variable advisory fees ⁽⁵⁾			—			—
Shares used in computing Adjusted Earnings Per Share (diluted)					148,967,950			145,279,938

GAAP Earnings (Loss) Per Share (diluted)				$	0.16		$	(0.42	)
Adjusted Earnings Per Share (diluted)				$	0.41		$	0.23
____________________

⁽¹	⁾	^{For the six months ended June 30, 2025, $0.8 million was related to acquisition costs, $0.4 million was related to the Redomiciliation Transaction and $0.6 million was related to restructuring and other non-recurring costs. For the six months ended June 30, 2024, $0.5 million was related to the Redomiciliation Transaction and other non-recurring Luxembourg related costs, and $0.1 million was related to other non-recurring costs.}
⁽²	⁾	^{The tax impact of non-GAAP adjustments reflects the total income tax expense commensurate with the non-GAAP measure of profitability.}
⁽³	⁾	^{The Company adds back the dilutive impact of options and warrants if amounts were excluded for purposes of GAAP EPS due to GAAP net loss during the period.}
⁽⁴	⁾	^{As of June 30, 2025 and 2024 a maximum of 2.4 million shares were expected to be issued within 12 months under the Founders fixed advisory fee.}
⁽⁵	⁾	^{Based on period end market prices, no shares were issuable under the Founders variable advisory fee.}

August 7, 2025 6:04 am

Ecovyst Reports Second Quarter 2025 Results

PR Newswire

WAYNE, Pa.
, Aug. 7, 2025 /PRNewswire/ — Ecovyst Inc. (NYSE: ECVT) (“Ecovyst” or the “Company”), a leading integrated and innovative global provider of advanced materials, specialty catalysts, virgin sulfuric acid and sulfuric acid regeneration services, today reported results for the second quarter ended June 30, 2025.

Second Quarter
2025 Results & Highlights

Sales of $200.1 million, compared to $182.8 million in the second quarter of 2024
Net Income of $6.0 million, compared to $8.3 million in the year-ago quarter, with a net income margin of 3.0% and diluted net income per share of $0.05. Adjusted Net Income was $13.7 million with Adjusted Diluted Income per share of $0.12
Adjusted EBITDA of $55.7 million, compared to $56.9 million in the second quarter of 2024, with an Adjusted EBITDA margin of 24.4%
Cash flows from operating activities were $43.3 million for the six months ended June 30, 2025, compared to $46.4 million for the six months ended June 30, 2024. Adjusted Free Cash Flow was $(2.4) million for the six months ended June 30, 2025, compared to $14.4 million for the six months ended June 30, 2024
Completed the acquisition of the Waggaman, Louisiana sulfuric acid production assets from Cornerstone Chemical Company for $35.0 million and customary working capital adjustments of $6.3 million
Repurchased $21.9 million of common stock

“We are pleased with our results for the second quarter of 2025. With demand fundamentals generally in line with our expectations, we delivered Adjusted EBITDA of $55.7 million, at the high end of our guidance range. Following a strong first half, we anticipate sustained demand within our Ecoservices segment for the remainder of 2025, and have secured a solid pipeline of orders for our differentiated hydrocracking catalysts. As a result, we are maintaining the midpoint of our prior guidance range for full-year 2025 Adjusted EBITDA, while tightening the guidance range to reflect first half results and our expectations for the balance of the year,” said Kurt J. Bitting, Ecovyst’s Chief Executive Officer.

“During the second quarter we completed the acquisition of the Waggaman, Louisiana sulfuric acid production assets from Cornerstone Chemical Company. We remain confident that Ecovyst will capture meaningful future benefits and synergies from the acquisition as we continue integrating these assets into Ecoservices in 2025. In addition, with our continued focus on delivering value for our stockholders, during the quarter we repurchased 2.9 million shares of common stock, totaling approximately $22 million,” said Bitting. “Lastly, with regard to the strategic review of our Advanced Materials & Catalysts segment, we continue to make steady progress and anticipate providing an update in the near future.”

Review of Segment Results and Business Trends

Ecoservices

Second quarter 2025 sales for Ecoservices were $176.0 million, compared to $153.9 million in the second quarter of 2024. The increase in sales reflects the pass-through effect of higher sulfur costs, favorable contractual pricing for regeneration services, strong pricing in virgin sulfuric acid, and the sales contribution from the Waggaman sulfuric acid assets, partially offset by lower sales volume for regeneration services driven by unplanned and extended customer downtime. Second quarter 2025 Adjusted EBITDA for Ecoservices was $49.8 million, compared to $49.7 million in the second quarter of 2024, with the favorable contract pricing for regeneration services, strong pricing in virgin sulfuric acid, along with lower turnaround costs, largely offset by lower regeneration services volume and higher anticipated manufacturing costs driven by general inflation.

Advanced Materials & Catalysts

During the second quarter of 2025, Advanced Silicas sales were $24.1 million, compared to $28.9 million in the second quarter of 2024. The decrease in sales was primarily the result of lower event-driven niche custom catalyst sales related to order timing. Our proportionate 50% share of second quarter sales for the Zeolyst Joint Venture was $28.4 million, compared to $29.0 million in the second quarter of 2024. The slight reduction in Zeolyst Joint Venture sales reflects lower sales of hydrocracking catalysts and custom catalysts, reflective of sales timing, partially offset by higher sales of catalysts used in the production of sustainable fuels and other specialty catalyst sales. Second quarter 2025 Adjusted EBITDA for Advanced Materials & Catalysts, which includes our 50% proportionate share of earnings from the Zeolyst Joint Venture, was $13.7 million, compared to $14.7 million in the second quarter of 2024, with the decrease largely driven by lower sales volume and mix due to the timing of niche custom catalyst sales within Advanced Silicas.

Cash Flows and Balance Sheet

Cash flows from operating activities was $43.3 million for the six months ended June 30, 2025, compared to $46.4 million for the six months ended June 30, 2024. The decrease was primarily driven by the timing of dividends received from the Zeolyst Joint Venture and lower earnings, partially offset by the change in working capital. At June 30, 2025, the Company had cash and cash equivalents of $69.6 million, total gross debt of $866.5 million and availability under the ABL facility of $82.9 million, after giving effect to $3.3 million of outstanding letters of credit and with no revolving credit facility borrowings outstanding, for total available liquidity of $152.5 million. The net debt to net income ratio for the trailing twelve months was not meaningful as of June 30, 2025 and the net debt leverage ratio for the trailing twelve months was 3.5x as of June 30, 2025.

2025 Financial Outlook

We are maintaining the midpoint of our full-year 2025 Adjusted EBITDA guidance range while tightening the range to reflect results for the first half of the year, and expectations for the balance of the year. In addition, we are increasing the sales guidance range to reflect factors including the acquisition of the Waggaman sulfuric acid assets. Although we expect the acquisition of the Waggaman sulfuric acid assets to contribute positively to Ecoservices’ sales for the remainder of the year, we expect the sales contribution will be largely offset by incremental costs, including costs for integration and upgrading the facility. In anticipation of continued high refinery utilization and growth in sulfuric acid demand, particularly in mining applications, we expect Ecoservices to benefit from higher sales volumes for both regeneration services and for virgin sulfuric acid in the second half of 2025, along with continued favorable pricing. For Advanced Silicas, we expect that our polyethylene catalyst sales will continue to outpace growth in global demand, with sales of polyethylene catalysts and supports in 2025 reflecting year-over-year growth compared to 2024. However, we remain cautious about the potential for global polyethylene demand to be adversely impacted by factors including tariffs and deterioration in global macroeconomic conditions. Within the Zeolyst Joint Venture, we currently anticipate year-over-year sales growth in 2025, compared to 2024, driven by positive momentum in hydrocracking catalyst sales. And while we believe the supply and demand imbalance will remain a factor for near-term sales of catalyst materials used in the production of sustainable fuels, we continue to expect our sales of sustainable fuel catalysts will be flat to slightly up in 2025, compared to 2024.

“Regarding tariffs, proposed tariff levels are still subject to change, and there remains the possibility of incremental demand disruption related to tariffs. Nevertheless, as mentioned in our first quarter earnings call, we maintain the view that the direct impact of current tariffs is limited to approximately $2 million to $3 million in 2025 within Ecovyst’s Advanced Materials & Catalysts segment. Furthermore, while we are maintaining our full-year guidance for Sales and Adjusted EBITDA, our full-year outlook does not incorporate the effect of any significant macroeconomic impacts or related demand fluctuations that could result from prolonged tariff uncertainty,” said Bitting.

The Company’s current guidance for full year 2025 is as follows:

Sales of $795 million to $835 million¹ (change from $785 million to $845 million)
Sales of $125 million to $140 million for proportionate 50% share of Zeolyst Joint Venture, which is excluded from GAAP Sales (change from $115 million to $130 million)
Adjusted EBITDA² of $242 million to $254 million (change from $238 million to $258 million)
Adjusted Free Cash Flow² of $70 million to $80 million (change from $60 million to $80 million)
Capital expenditures of $80 million to $90 million
Interest expense of $46 million to $50 million (change from $47 million to $53 million)
Depreciation & Amortization
- Ecovyst – $92 million to $98 million (change from $87 million to $93 million)
- Zeolyst J.V. – $12 million to $14 million
Effective tax rate in the mid 20% range
Adjusted Net Income² of $60 million to $80 million, with Adjusted Diluted Income² per share of $0.52 to $0.68 (change from $58 million to $85 million and $0.50 to $0.70)

The Company’s guidance for the third quarter of 2025 is as follows:

Adjusted EBITDA² of $62 million to $72 million

¹Sales outlook for 2025 assumes higher average sulfur prices compared to 2024 and higher projected pass-through of sulfur costs of approximately $65 million.

²In reliance upon the unreasonable efforts exemption provided under Item 10(e)(1)(i)(B) of Regulation S-K, the Company is not able to provide a reconciliation of its non-GAAP financial guidance to the corresponding GAAP measures without unreasonable effort because of the inherent difficulty in forecasting and quantifying certain amounts necessary for such a reconciliation such as certain non-cash, nonrecurring or other items that are included in net income and net cash provided by operating activities as well as the related tax impacts of these items and asset dispositions / acquisitions and changes in foreign currency exchange rates that are included in cash flow, due to the uncertainty and variability of the nature and amount of these future charges and costs. Because this information is uncertain, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.

Stock Repurchase

In April 2022, the Company’s Board of Directors approved a stock repurchase program authorizing the repurchase of up to $450 million of the Company’s outstanding common stock over the next four years. As of June 30, 2025, $207.7 million was available for share repurchases under the program.

During the second quarter of 2025, the Company repurchased 2,926,152 shares of its common stock on the open market at an average price of $7.47 per share, for a total cost of $21.9 million.

During the second quarter of 2024, the Company repurchased 552,081 shares of its common stock on the open market at an average price of $9.05 per share, for a total cost of $5.0 million.

For possible future repurchases, the actual timing, number, and nature of shares repurchased will depend on a variety of factors, including stock price, trading volume, and general business and market conditions and may be conducted through negotiated transactions, open market repurchases or other means, including through Rule 10b-18 and Rule 10b5-1 trading plans or accelerated share repurchases. The repurchase program does not obligate the Company to acquire any number of shares in any specific period, or at all, and the repurchase program may be amended, suspended or discontinued at any time at the Company’s discretion.

Conference Call and Webcast Details

On Thursday, August 7, 2025, Ecovyst management will review the second quarter 2025 results during a conference call and audio-only webcast scheduled for 11:00 a.m. Eastern Time.

Conference Call: Investors may listen to the conference call live via telephone by dialing 1 (800) 245-3047 (domestic) or
1 (203) 518-9765 (international) and use the participant code ECVTQ225.

Webcast: An audio-only live webcast of the conference call and presentation materials can be accessed at https://investor.ecovyst.com. A replay of the conference call/webcast will be made available at https://investor.ecovyst.com/events-presentations.

Investor Contact:

Gene Shiels

(484) 617-1225
[email protected]

About Ecovyst Inc.

Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of advanced materials, specialty catalysts, virgin sulfuric acid and sulfuric acid regeneration services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products and services contribute to improving the sustainability of the environment.

We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides high quality and high strength virgin sulfuric acid for industrial and mining applications. Ecoservices also provides chemical waste handling and treatment services, as well as ex-situ catalyst activation services for the refining and petrochemical industry. Advanced Materials & Catalysts, through its Advanced Silicas business, provides finished silica catalysts, catalyst supports and functionalized silicas necessary to produce high performing plastics and to enable sustainable chemistry, and through its Zeolyst Joint Venture, innovates and supplies specialty zeolites used in catalysts that support the production of sustainable fuels, remove nitrogen oxides from diesel engine emissions and that are broadly applied in refining and petrochemical processes. For more information, see our website at https://www.ecovyst.com.

Presentation of Non-GAAP Financial Measures

In addition to the results provided in accordance with U.S. generally accepted accounting principles (“GAAP”) throughout this press release, the Company has provided non-GAAP financial measures — Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Free Cash Flow, Adjusted Free Cash Flow, Adjusted Diluted Income per share, Net Debt to Net Income ratio and Net Debt Leverage Ratio (collectively, “Non-GAAP Financial Measures”) — which present results on a basis adjusted for certain items. The Company uses these Non-GAAP Financial Measures for business planning purposes and in measuring its performance relative to that of its competitors. The Company believes that these Non-GAAP Financial Measures are useful financial metrics to assess its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core business. These Non-GAAP Financial Measures are not intended to replace, and should not be considered superior to, the presentation of the Company’s financial results in accordance with GAAP. The use of the Non-GAAP Financial Measures terms may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. These Non-GAAP Financial Measures are reconciled from the respective measures under GAAP in the attached appendix.

Zeolyst Joint Venture

The Company’s zeolite catalysts product group operates through its Zeolyst Joint Venture, which is accounted for as an equity method investment in accordance with GAAP. The presentation of the Zeolyst Joint Venture’s sales represents 50% of the sales of the Zeolyst Joint Venture. The Company does not record its proportionate share of sales from the Zeolyst Joint Venture accounted for using the equity method as revenue and such sales are not consolidated within its results of operations. However, Adjusted EBITDA for the Company’s Advanced Materials & Catalysts segment reflects the Company’s 50% portion of the earnings from the Zeolyst Joint Venture that have been recorded as equity in net income in the Company’s condensed consolidated statements of income for such periods and includes Zeolyst Joint Venture adjustments on a proportionate basis based on the Company’s 50% ownership interest. Accordingly, the Company’s Adjusted EBITDA margins are calculated including 50% of the sales of the Zeolyst Joint Venture for the relevant periods in the denominator.

Note on Forward-Looking Statements

Some of the information contained in this press release constitutes “forward-looking statements.” Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “projects” and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Examples of forward-looking statements include, but are not limited to, statements regarding our future results of operations, financial condition, capital expenditure projects, liquidity, prospects, growth, strategies, capital allocation program (including the stock repurchase program), product and service offerings, expected demand trends, the timing and outcome, if any, of our strategic review process for our Advanced Materials & Catalysts segment, the impact of the acquisition of the Waggaman sulfuric acid assets, the effect of tariffs on our business and results and our third quarter and full year 2025 financial outlook. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, regional, national or global political, economic, business, competitive, market and regulatory conditions, including the enactment, schedule and impact of tariffs and trade disputes, currency exchange rates, the effects of inflation, the timing and outcome, if any, of our strategic review process for our Advanced Materials & Catalysts segment, and other factors, including those described in the sections titled “Risk Factors” and “Management’s Discussion & Analysis of Financial Condition and Results of Operations” in our filings with the SEC, which are available on the SEC’s website at www.sec.gov. These forward-looking statements speak only as of the date of this release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.

ECOVYST INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions, except share and per share amounts)

	Three months ended June 30,			Six months ended June 30,
	2025	2024	% Change	2025	2024	% Change

Sales	$ 200.1	$ 182.8	9.5 %	$ 362.3	$ 343.4	5.5 %
Cost of goods sold	150.4	129.1	16.5 %	287.0	250.5	14.6 %
Gross profit	49.7	53.7	(7.4) %	75.3	92.9	(18.9) %
Selling, general and administrative expenses	22.7	22.7	— %	44.0	44.3	(0.7) %
Other operating expense, net	9.2	3.1	196.8 %	14.4	6.8	111.8 %
Operating income	17.8	27.9	(36.2) %	16.9	41.8	(59.6) %
Equity in net (income) from affiliated companies	(1.9)	(1.4)	35.7 %	(10.8)	(3.5)	208.6 %
Interest expense, net	11.1	12.9	(14.0) %	22.1	26.3	(16.0) %
Debt modification and extinguishment costs	—	4.6	(100.0) %	1.0	4.6	(78.3) %
Other expense, net	0.6	0.4	50.0 %	0.7	0.6	16.7 %
Income before income taxes	8.0	11.4	(29.8) %	3.9	13.8	(71.7) %
Provision for income taxes	2.0	3.1	(35.5) %	1.5	4.3	(65.1) %
Effective tax rate	25.6 %	27.1 %		38.8 %	30.9 %
Net income	$ 6.0	$ 8.3	(27.7) %	$ 2.4	$ 9.5	(74.7) %

Earnings per share:
Basic earnings per share	$ 0.05	$ 0.07		$ 0.02	$ 0.08
Diluted earnings per share	$ 0.05	$ 0.07		$ 0.02	$ 0.08

Weighted average shares outstanding:
Basic	116,232,528	116,912,332		116,745,476	116,935,708
Diluted	116,535,060	117,635,289		117,044,461	117,545,240

ECOVYST INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share and per share amounts)

	June 30, 2025	December 31, 2024
ASSETS
Cash and cash equivalents	$ 69.6	$ 146.0
Accounts receivable, net	103.5	77.9
Inventories, net	66.9	57.1
Derivative assets	4.0	6.5
Prepaid and other current assets	25.4	16.1
Total current assets	269.4	303.6
Investments in affiliated companies	346.5	349.3
Property, plant and equipment, net	602.9	569.3
Goodwill	406.7	404.1
Other intangible assets, net	94.8	98.4
Right-of-use lease assets	37.1	33.6
Other long-term assets	39.0	44.0
Total assets	$ 1,796.4	$ 1,802.3
LIABILITIES
Current maturities of long-term debt	$ 8.7	$ 8.7
Accounts payable	47.9	43.9
Operating lease liabilities—current	9.0	9.3
Accrued liabilities	54.0	53.2
Total current liabilities	119.6	115.1
Long-term debt, excluding current portion	847.9	852.1
Deferred income taxes	104.6	105.4
Operating lease liabilities—noncurrent	28.2	24.2
Other long-term liabilities	3.7	5.0
Total liabilities	1,104.0	1,101.8
Commitments and contingencies
EQUITY
Common stock ($0.01 par); authorized shares 450,000,000; issued shares 140,872,846 and 140,872,846 on June 30, 2025 and December 31, 2024, respectively; outstanding shares 114,487,661 and 116,534,803 on June 30, 2025 and December 31, 2024, respectively	1.4	1.4
Preferred stock ($0.01 par); authorized shares 50,000,000; no shares issued or outstanding on June 30, 2025 and December 31, 2024	—	—
Additional paid-in capital	1,103.5	1,106.8
Accumulated deficit	(175.1)	(177.5)
Treasury stock, at cost; shares 26,385,185 and 24,338,043 on June 30, 2025 and December 31, 2024, respectively	(236.6)	(222.8)
Accumulated other comprehensive loss	(0.8)	(7.4)
Total equity	692.4	700.5
Total liabilities and equity	$ 1,796.4	$ 1,802.3

ECOVYST INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six months ended June 30,
	2025	2024
Cash flows from operating activities:	(in millions)
Net income	$ 2.4	$ 9.5
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	40.0	36.5
Amortization	7.0	7.0
Amortization of deferred financing costs and original issue discount	0.7	1.1
Debt extinguishment costs	—	0.1
Foreign currency exchange loss	0.4	0.2
Deferred income tax provision (benefit)	1.4	(1.7)
Net loss on asset disposals	0.4	0.6
Stock compensation	6.5	7.5
Equity in net (income) from affiliated companies	(10.8)	(3.5)
Dividends received from affiliated companies	20.0	33.0
Other, net	(0.1)	2.3
Working capital changes that provided (used) cash:
Receivables	(15.0)	(4.1)
Inventories	(6.0)	(6.7)
Prepaids and other current assets	(2.5)	(4.5)
Accounts payable	6.5	(3.3)
Accrued liabilities	(7.6)	(27.6)
Net cash provided by operating activities	43.3	46.4

Cash flows from investing activities:
Purchases of property, plant and equipment	(49.5)	(36.6)
Business combinations	(41.3)	—
Other, net	—	(0.2)
Net cash used in investing activities	(90.8)	(36.8)

Cash flows from financing activities:
Issuance of long-term debt, net of original issue discount and financing fees	870.8	870.8
Repayments of long-term debt	(875.2)	(877.5)
Repurchases of common shares	(21.9)	(5.0)
Tax withholdings on equity award vesting	(1.5)	(1.2)
Repayment of financing obligation	(1.6)	(1.5)
Net cash used in financing activities	(29.4)	(14.4)

Effect of exchange rate changes on cash and cash equivalents	0.5	(0.3)
Net change in cash and cash equivalents	(76.4)	(5.1)
Cash and cash equivalents at beginning of period	146.0	88.4
Cash and cash equivalents at end of period	$ 69.6	$ 83.3

Appendix Table A-1: Reconciliation of Net Income (Loss) to Adjusted EBITDA

	Three months ended June 30,		Six months ended June 30,
	2025	2024	2025	2024
	(in millions)
Reconciliation of net income to Adjusted EBITDA
Net income	$ 6.0	$ 8.3	$ 2.4	$ 9.5
Provision for income taxes	2.0	3.1	1.5	4.3
Interest expense, net	11.1	12.9	22.1	26.3
Depreciation and amortization	23.9	21.6	47.1	43.6
EBITDA	43.0	45.9	73.1	83.7
Joint venture depreciation, amortization and interest^(a)	3.2	3.2	6.3	6.5
Amortization of investment in affiliate step-up^(b)	0.6	0.9	1.2	2.5
Debt modification and extinguishment costs	—	4.6	1.0	4.6
Net loss on asset disposals^(d)	0.3	—	0.4	0.6
Foreign currency exchange (gain) loss^(e)	—	(0.1)	0.1	0.1
LIFO benefit^(f)	(0.4)	(1.5)	(1.2)	(2.7)
Transaction and other related costs^(g)	2.7	0.1	4.5	0.2
Equity-based compensation	3.4	3.8	6.5	7.5
Restructuring, integration and business optimization expenses^(h)	1.0	0.2	1.2	0.4
Other⁽ⁱ⁾	1.9	(0.2)	1.5	(1.0)
Adjusted EBITDA	$ 55.7	$ 56.9	$ 94.6	$ 102.4

	Trailing twelve months ended June 30,
	2025	2024
	(in millions)
Reconciliation of net (loss) income to Adjusted EBITDA
Net (loss) income	$ (13.8)	$ 56.1
(Benefit) provision for income taxes	(1.3)	5.4
Interest expense, net	45.2	52.0
Depreciation and amortization	92.8	86.9
EBITDA	122.9	200.4
Joint venture depreciation, amortization and interest^(a)	13.2	13.1
Amortization of investment in affiliate step-up^(b)	2.4	5.7
Impairment of investment in affiliated companies^(c)	65.0	—
Intangible asset impairment charge	3.9	—
Debt modification and extinguishment costs	1.0	4.6
Net loss on asset disposals^(d)	2.3	2.4
Foreign currency exchange gain^(e)	(0.2)	—
LIFO benefit^(f)	(0.8)	(1.6)
Transaction and other related costs^(g)	4.8	0.6
Equity-based compensation	13.0	14.4
Restructuring, integration and business optimization expenses^(h)	1.7	1.0
Other⁽ⁱ⁾	1.1	(0.5)
Adjusted EBITDA	$ 230.3	$ 240.1

Descriptions to Ecovyst Non-GAAP Reconciliations

^(a)	We use Adjusted EBITDA as a performance measure to evaluate our financial results. Because our Advanced Materials & Catalysts segment reflects our 50% portion of the earnings from the Zeolyst Joint Venture, we include an adjustment for our 50% proportionate share of depreciation, amortization and interest expense of the Zeolyst Joint Venture.
^(b)	Represents the amortization of the fair value adjustments associated with the equity affiliate investment in the Zeolyst Joint Venture as a result of the combination of the businesses of PQ Holdings Inc. and Eco Services Operations LLC in May 2016. We determined the fair value of the equity affiliate investment and the fair value step-up was then attributed to the underlying assets of the Zeolyst Joint Venture. Amortization is primarily related to the fair value adjustments associated with intangible assets, including customer relationships and technical know-how.
^(c)	Represents fair value impairments associated with the equity affiliate investment in the Zeolyst Joint Venture. During the year ended December 31, 2024, we recognized an impairment charge on our investment in the Zeolyst Joint Venture to reduce the carrying value of our investment to its estimated fair value. This impairment was a partial reduction to the goodwill and trade name components of the purchase accounting fair value adjustments recorded as a result of the combination of the businesses of PQ Holdings Inc. and Eco Services Operations LLC in May 2016.
^(d)	When asset disposals occur, we remove the impact of net gain/loss of the disposed asset because such impact primarily reflects the non-cash write-off of long-lived assets no longer in use.
^(e)	Reflects the exclusion of the foreign currency transaction gains and losses in the condensed consolidated statements of income related to the remeasurement effects of monetary assets and liabilities, including non-permanent intercompany debt, denominated in foreign currency.
^(f)	Represents non-cash adjustments to the Company’s LIFO reserves for certain inventories in the U.S. that are valued using the LIFO method, effectively reflecting the results as if these inventories were valued using the FIFO method, which we believe provides a means of comparison to other companies that may not use the same basis of accounting for inventories.
^(g)	Relates to certain transaction costs, including debt financing, due diligence and other costs related to transactions that are completed, pending or abandoned, that we believe are not representative of our ongoing business operations.
^(h)	Includes the impact of restructuring, integration and business optimization expenses, which are incremental costs that are not representative of our ongoing business operations.
⁽ⁱ⁾	Other consists of adjustments for items that are not core to our ongoing business operations. These adjustments include environmental remediation and other legal costs, expenses for capital and franchise taxes, and defined benefit pension and postretirement plan (benefits) costs, for which our obligations are under plans that are frozen. Also included in this amount are adjustments to eliminate the benefit realized in cost of goods sold of the allocation of a portion of the contract manufacturing payments under the five-year agreement with the buyer of the Performance Chemicals business to the financing obligation under the failed sale-leaseback. Included in this line-item are rounding discrepancies that may arise from rounding from dollars (in thousands) to dollars (in millions).

Appendix Table A-2: Reconciliation of Net Income and EPS to Adjusted Net Income and Adjusted EPS⁽¹⁾

	Three months ended June 30,
	2025					2024
	Pre-tax amount	Tax expense (benefit)	After-tax amount	Per share, basic	Per share, diluted	Pre-tax amount	Tax expense (benefit)	After-tax amount	Per share, basic	Per share, diluted
	(in millions, except share and per share amounts)
Net income	$ 8.0	$ 2.0	$ 6.0	$ 0.05	$ 0.05	$ 11.4	$ 3.1	$ 8.3	$ 0.07	$ 0.07
Amortization of investment in affiliate step-up^(b)	0.6	0.1	0.5	—	—	0.9	0.2	0.7	0.01	0.01
Debt modification and extinguishment costs	—	—	—	—	—	4.6	1.2	3.4	0.03	0.03
Net loss on asset disposals^(d)	0.3	0.1	0.2	—	—	—	—	—	—	—
Foreign currency exchange gain^(e)	—	—	—	—	—	(0.1)	—	(0.1)	—	—
LIFO benefit^(f)	(0.4)	(0.1)	(0.3)	—	—	(1.5)	(0.3)	(1.2)	(0.01)	(0.01)
Transaction and other related costs^(g)	2.7	0.6	2.1	0.02	0.02	0.1	—	0.1	—	—
Equity-based compensation	3.4	0.4	3.0	0.03	0.03	3.8	0.9	2.9	0.02	0.02
Restructuring, integration and business optimization expenses^(h)	1.0	0.2	0.8	0.01	0.01	0.2	0.1	0.1	—	—
Other⁽ⁱ⁾	1.9	0.5	1.4	0.01	0.01	(0.2)	(0.1)	(0.1)	—	—
Adjusted Net Income⁽¹⁾	$ 17.5	$ 3.8	$ 13.7	$ 0.12	$ 0.12	$ 19.2	$ 5.1	$ 14.1	$ 0.12	$ 0.12

Weighted average shares outstanding				116,232,528	116,535,060				116,912,332	117,635,289

	Six months ended June 30,
	2025					2024
	Pre-tax amount	Tax expense (benefit)	After-tax amount	Per share, basic	Per share, diluted	Pre-tax amount	Tax expense (benefit)	After-tax amount	Per share, basic	Per share, diluted
	(in millions, except share and per share amounts)
Net income	$ 3.9	$ 1.5	$ 2.4	$ 0.02	$ 0.02	$ 13.8	$ 4.3	$ 9.5	$ 0.08	$ 0.08
Amortization of investment in affiliate step-up^(b)	1.2	0.3	0.9	0.01	0.01	2.5	0.6	1.9	0.02	0.02
Debt modification and extinguishment costs	1.0	0.2	0.8	0.01	0.01	4.6	1.2	3.4	0.03	0.03
Net loss on asset disposals^(d)	0.4	0.1	0.3	—	—	0.6	0.1	0.5	—	—
Foreign currency exchange loss^(e)	0.1	—	0.1	—	—	0.1	—	0.1	—	—
LIFO benefit^(f)	(1.2)	(0.3)	(0.9)	(0.01)	(0.01)	(2.7)	(0.7)	(2.0)	(0.02)	(0.02)
Transaction and other related costs^(g)	4.5	1.1	3.4	0.03	0.03	0.2	0.1	0.1	—	—
Equity-based compensation	6.5	0.3	6.2	0.05	0.05	7.5	1.4	6.1	0.05	0.05
Restructuring, integration and business optimization expenses^(h)	1.2	0.3	0.9	0.01	0.01	0.4	0.1	0.3	—	—
Other⁽ⁱ⁾	1.5	0.4	1.1	0.01	0.01	(1.0)	(0.3)	(0.7)	—	—
Adjusted Net Income⁽¹⁾	$ 19.1	$ 3.9	$ 15.2	$ 0.13	$ 0.13	$ 26.0	$ 6.8	$ 19.2	$ 0.16	$ 0.16

Weighted average shares outstanding				116,745,476	117,044,461				116,935,708	117,545,240

See Appendix Table A-1 for Descriptions to Ecovyst Non-GAAP Reconciliations in the table above.

⁽¹⁾

We define Adjusted Net Income as net income adjusted for non-operating income or expense and the impact of certain non-
cash or other items that are included in net income that we do not consider indicative of our ongoing operating performance.
Adjusted Net Income is presented as a key performance indicator as we believe it will enhance a prospective investor’s
understanding of our results of operations and financial condition. Adjusted Net Income may not be comparable with net
income or Adjusted Net Income as defined by other companies.

The adjustments to net income are shown net of applicable tax rates of 23.8% and 25.1% for the six months ended June 30, 2025 and 2024, respectively, except for equity-based compensation. The tax effect on equity-based compensation is derived by removing the tax effect of any equity-based compensation expense disallowed as a result of its inclusion within IRC Sec. 162(m), and adding the tax effect of equity-based stock compensation shortfall recorded as a discrete item.

Appendix Table A-3: Sales and Adjusted EBITDA by Business Segment

	Three months ended June 30,			Six months ended June 30,
	2025	2024	% Change	2025	2024	% Change

Sales:
Ecoservices	$ 176.0	$ 153.9	14.4 %	$ 319.1	$ 295.6	7.9 %
Advanced Materials & Catalysts⁽¹⁾	24.1	28.9	(16.6) %	43.2	47.8	(9.6) %
Total sales	$ 200.1	$ 182.8	9.5 %	$ 362.3	$ 343.4	5.5 %

Zeolyst Joint Venture sales	$ 28.4	$ 29.0	(2.1) %	$ 66.2	$ 52.5	26.1 %

Adjusted EBITDA:
Ecoservices	$ 49.8	$ 49.7	0.2 %	$ 78.3	$ 91.2	(14.1) %
Advanced Materials & Catalysts	13.7	14.7	(6.8) %	31.2	25.8	20.9 %
Unallocated corporate expenses	(7.8)	(7.5)	(4.0) %	(14.9)	(14.6)	(2.1) %
Total Adjusted EBITDA	$ 55.7	$ 56.9	(2.1) %	$ 94.6	$ 102.4	(7.6) %

Adjusted EBITDA Margin:
Ecoservices	28.3 %	32.3 %		24.5 %	30.9 %
Advanced Materials & Catalysts⁽²⁾	26.1 %	25.4 %		28.5 %	25.7 %
Total Adjusted EBITDA Margin⁽²⁾	24.4 %	26.8 %		22.1 %	25.9 %

⁽¹⁾	Represents GAAP sales for the Advanced Silicas business; Excludes our proportionate 50% share of sales from the Zeolyst Joint Venture.
⁽²⁾	Adjusted EBITDA Margin calculation reflects our proportionate 50% share of sales from the Zeolyst Joint Venture.

Appendix Table A-4: Adjusted Free Cash Flow

	Six months ended June 30,
	2025	2024
	(in millions)
Net cash provided by operating activities	$ 43.3	$ 46.4
Less:
Purchases of property, plant and equipment⁽¹⁾	(49.5)	(36.6)
Free Cash Flow⁽²⁾	$ (6.2)	$ 9.8

Adjustments to free cash flow:
Cash paid for debt financing costs	1.0	4.6
Cash paid for costs related to the Waggaman acquisition	2.8	—
Adjusted Free Cash Flow⁽²⁾	$ (2.4)	$ 14.4

Net cash used in investing activities⁽³⁾	$ (90.8)	$ (36.8)
Net cash used in financing activities	$ (29.4)	$ (14.4)

⁽¹⁾	Excludes the Company’s proportionate 50% share of capital expenditures from the Zeolyst Joint Venture.
⁽²⁾	We define Adjusted Free Cash Flow as net cash provided by operating activities less purchases of property, plant and equipment, adjusted for cash flows that are unusual in nature and/or infrequent in occurrence that neither relate to our core business nor reflect the liquidity of our underlying business. Historically these adjustments include proceeds from the sale of assets, net interest proceeds on swaps designated as net investment hedges, the cash paid for segment disposals and cash paid for debt financing costs included in cash from operating activities. Adjusted Free Cash Flow is a non-GAAP financial measure that we believe will enhance a prospective investor’s understanding of our ability to generate additional cash from operations and is an important financial measure for use in evaluating our financial performance. Our presentation of Adjusted Free Cash Flow is not intended to replace, and should not be considered superior to, the presentation of our net cash provided by operating activities determined in accordance with GAAP. Additionally, our definition of Adjusted Free Cash Flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view Adjusted Free Cash Flow as a measure that provides supplemental information to our condensed consolidated statements of cash flows. You should not consider Adjusted Free Cash Flow in isolation or as an alternative to the presentation of our financial results in accordance with GAAP. The presentation of Adjusted Free Cash Flow may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures.
⁽³⁾	Net cash used in investing activities includes purchases of property, plant and equipment, which is also included in our computation of Adjusted Free Cash Flow.

Appendix Table A-5: Net Debt Leverage Ratio

	June 30, 2025	June 30, 2024
	(in millions, except ratios)
Total debt	$ 866.5	$ 873.0
Less:
Cash and cash equivalents	69.6	83.3
Net debt	$ 796.9	$ 789.7

Trailing twelve months:
Net (loss) income	$ (13.8)	$ 56.1
Adjusted EBITDA⁽¹⁾	$ 230.3	$ 240.1

Net Debt to Net Income ratio	NM	14.1x
Net Debt Leverage ratio	3.5x	3.3x


⁽¹⁾	Refer to Appendix Table A-1: Reconciliation of Net Income (Loss) to Adjusted EBITDA for the reconciliation to the most comparable GAAP financial measure.

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SOURCE Ecovyst Inc.

August 7, 2025 6:04 am

Haemonetics 1st Quarter Fiscal Year 2026 Earnings Release Available on Investor Relations Website

PR Newswire

Financial release accessible online

BOSTON
, Aug. 7, 2025 /PRNewswire/ — Haemonetics Corporation (NYSE: HAE) announced that financial results for its first quarter fiscal year 2026, which ended June 28, 2025, are available on its Investor Relations website.

The Company will host a conference call and webcast with investors and analysts to discuss and answer questions about the results at 8:00 a.m. ET on August 7, 2025. The conference call and webcast can be accessed with the following information:

Teleconference link:
https://register-conf.media-server.com/register/BIb1de2bd7b8ba4267b7bc38da4e4008c7
Once registration is completed, participants will receive a dial-in number along with a personalized PIN to access the call. While not required, it is recommended that participants join 10 minutes prior to the event start.
A live webcast of the call can be accessed on Haemonetics’ investor relations website or via the following link: https://edge.media-server.com/mmc/p/wv7zkgdh

In addition, the Company has posted to its Investor Relations website the earnings release that will be referenced on its conference call and webcast, a link to which is available below.

Direct link to 1Q FY26 Earnings Release:
https://haemonetics.gcs-web.com/static-files/078498e0-b75c-4cd4-94fb-93730b3b1c70

A replay of the conference call and webcast will be available for one year beginning on August 7, 2025, at 11:00 a.m. ET using the conference call webcast link provided in this press release.

ABOUT HAEMONETICS
Haemonetics is a global medical technology company dedicated to improving the quality, effectiveness and efficiency of health care. Our innovative solutions addressing critical medical needs include a suite of hospital technologies designed to advance standards of care and help enhance outcomes for patients; end-to-end plasma collection technologies to optimize operations for plasma centers; and products to enable blood centers to collect in-demand blood components. To learn more about Haemonetics, visit www.haemonetics.com.

Investor Contacts:
Olga Guyette, Vice President-Investor Relations & Treasury	David Trenk, Manager-Investor Relations
(781) 356-9763	(203) 733-4987
[email protected]	[email protected]

Media Contact: Josh Gitelson, Sr. Director-Global Communications (781) 356-9776 [email protected]

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SOURCE Haemonetics Corporation

August 7, 2025 6:04 am

Dentsply Sirona Reports Second Quarter 2025 Results

Net sales of
$936 million
decreased
(4.9%)
, decreased
(6.7%)
in constant currency including a (3.2%) Byte sales impact
GAAP gross margin of
52.4%
, GAAP net loss per share of
($0.22)
Adjusted gross margin of
55.9%
, adjusted EBITDA margin of
21.1%
, adjusted EPS of
$0.52
Executed $550 million debt offering
Reaffirmed FY25 outlook
Leadership transition with Dan Scavilla appointed CEO effective August 1, 2025 and Matt Garth appointed CFO effective May 30, 2025

CHARLOTTE, N.C., Aug. 07, 2025 (GLOBE NEWSWIRE) — DENTSPLY SIRONA Inc. (“Dentsply Sirona” or the “Company”) (Nasdaq: XRAY) today announced its financial results for the second quarter of 2025.

Second quarter net sales of $936 million decreased (4.9%) (decreased (6.7%) in constant currency) compared to the second quarter of 2024. Foreign currency changes positively impacted second quarter 2025 net sales by approximately $18 million. Net loss attributable to Dentsply Sirona was ($45) million, or ($0.22) per share, compared to a net loss of ($4) million, or ($0.02) per share in the second quarter of 2024. Non-cash charges for the impairment of goodwill and other intangible assets were ($214) million net of tax, or ($1.07) per share in the second quarter of 2025, versus no impairment charges in the second quarter of 2024. Adjusted earnings per diluted share were $0.52, compared to $0.49 in the second quarter of 2024. A reconciliation of Non-GAAP measures (including constant currency, adjusted EBITDA and margin, adjusted EPS, adjusted free cash flow conversion, and segment adjusted operating income) to GAAP measures is provided below.

“I see tremendous opportunity at Dentsply Sirona and I am looking forward to digging in with the team to increase our customer-centric focus and to direct investments in areas that will generate sustainable growth,” said Dan Scavilla, Chief Executive Officer. “I’m confident that these efforts will strengthen Dentsply Sirona as a clear industry leader.”

“While top-line results were down in the quarter, we were pleased to continue to deliver margin expansion,” said Matt Garth, Chief Financial Officer. “We increased our financial flexibility, drove adjusted EPS growth and are actively focused on enhancing cash flow generation to support the long-term profitable growth of the Company. As we move forward, we plan to advance our initiatives, remain disciplined in our capital allocation, and deliver sustainable value for our shareholders.”

Q2 2025 Summary Results (GAAP)

(in millions, except per share amount and percentages)	Q2 25	Q2 24	YoY

Net Sales	$936	$984	(4.9 %)
Gross Profit	$490	$511	(4.0 %)
Gross Margin	52.4%	51.9%
Net Income Attributable to Dentsply Sirona	($45)	($4)	NM
Diluted Earnings Per Share	($0.22)	($0.02)	NM

Q2 2025 Summary Results (Non-GAAP)

^[1]

(in millions, except per share amount and percentages)	Q2 25	Q2 24	YoY

Net Sales	$936	$984	(4.9 %)
Constant Currency			(6.7 %)
Adjusted Gross Profit	$523	$544	(4.0 %)
Adjusted Gross Margin	55.9 %	55.3 %
Adjusted EBITDA	$197	$173	14.6 %
Adjusted EBITDA Margin	21.1 %	17.5 %
Adjusted EPS	$0.52	$0.49	6.6 %

^{NM – not meaningful}

^{Percentages are based on actual values and may not reconcile due to rounding.}

^{[1] Constant currency, adjusted gross profit and margin, adjusted EBITDA and margin, and adjusted EPS are Non-GAAP financial measures which exclude certain items. Please refer to “Non-GAAP Financial Measures” below for a description of these measures and to the tables at the end of this release for a reconciliation between GAAP and Non-GAAP measures.}

Q2 2025 Segment Results

	Net Sales Change vs. Prior year
	Reported	Foreign Exchange Impact	Constant Currency

Connected Technology Solutions	(3.8 %)	2.1 %	(5.9 %)
Essential Dental Solutions	2.9 %	1.8 %	1.1 %
Orthodontic and Implant Solutions	(18.1 %)	1.3 %	(19.4 %)
Wellspect Healthcare	1.2 %	3.7 %	(2.5 %)
Total	(4.9 %)	1.8 %	(6.7 %)

Q2 2025 Geographic Results

	Net Sales Change vs. Prior Year
	Reported	Foreign Exchange Impact	Constant Currency

United States	(18.3 %)	—%	(18.3 %)
Europe	4.3 %	4.7 %	(0.4 %)
Rest of World	0.5 %	—%	0.5 %
Total	(4.9 %)	1.8 %	(6.7 %)

Cash Flow and Liquidity

Operating cash flow in the second quarter of 2025 was $48 million, compared to $208 million in the second quarter of 2024; the decrease was primarily due to unfavorable working capital and the receipt of a foreign tax refund in the prior year quarter. In the second quarter of 2025, the Company paid $32 million in dividends resulting in a total of $64 million returned to stockholders in the first six months of 2025. On June, 12, 2025, the Company issued $550 million aggregate principal amount of 8.375% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2055 through a public offering, the proceeds of which were used to repay outstanding amounts under the Company’s bridge loan facility and for general corporate purposes. The Company had $359 million of cash and cash equivalents as of June 30, 2025. On July 1, 2025, the Company entered into a series of interest rate swap contracts to manage interest rate risk on long-term debt instruments.

Goodwill and Indefinite-Lived Intangible Asset Impairment

In the second quarter of 2025, the Company recorded a non-cash charge for the impairment of goodwill and other indefinite-lived intangible assets of ($214) million net of tax within the Orthodontic and Implant Solutions and Connected Technology Solutions segments. These impairments were driven by the impacts from tariffs and lower volumes in implants and prosthetics and equipment, due partly to competitive pressures.

2025 Outlook

The Company is maintaining its 2025 outlook for net sales of $3.60 billion to $3.70 billion, down (4.0%) to (2.0%) on a constant currency basis, and adjusted EPS in the range of $1.80 to $2.00. This outlook reflects the current state of tariffs and trade policy.

Other 2025 outlook assumptions are included in the second quarter 2025 earnings presentation posted on the Investors section of the Dentsply Sirona website at https://investor.dentsplysirona.com. The Company does not provide forward-looking estimates on a GAAP basis as certain information, which may include, but is not limited to, restructuring charges, transformation-related costs, impairment charges, certain tax adjustments, and other significant items, is not available without unreasonable effort and cannot be reasonably estimated. The exact amounts of these charges or credits are not currently determinable but may be significant.

Quarterly Cash Dividend

On July 31, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.16 per share of common stock, an indicated annual rate of $0.64 per share. The dividend is payable on October 10, 2025, to holders of record as of September 26, 2025.

Conference Call/Webcast Information

Dentsply Sirona’s management team will host an investor conference call and live webcast on August 7th, 2025, at 8:30 am ET. The live webcast and a presentation related to the call will be available on the Investors section of the Company’s website at https://investor.dentsplysirona.com.

For those planning to participate on the call, please register at https://register-conf.media-server.com/register/BI53ec0a63538f4269bf74d4ce11a882e4. A webcast replay of the conference call will be available on the Investors section of the Company’s website following the call.

About Dentsply Sirona

Dentsply Sirona is the world’s largest diversified manufacturer of professional dental products and technologies, with over a century of innovation and service to the dental industry and patients worldwide. Dentsply Sirona develops, manufactures, and markets a comprehensive solutions offering, including dental and oral health products as well as other consumable medical devices under a strong portfolio of world-class brands. Dentsply Sirona’s innovative products provide, high-quality, effective and connected solutions to advance patient care and deliver better and safer dental care. Dentsply Sirona’s headquarters is located in Charlotte, North Carolina. The Company’s shares are listed in the United States on Nasdaq under the symbol XRAY. Visit www.dentsplysirona.com for more information about Dentsply Sirona and its products.

Contact Information:

Investors:
Andrea Daley
Vice President, Investor Relations
+1-704-591-8631
[email protected]

Press:
Marion Par-Weixlberger
Vice President, Public Relations & Corporate Communications
+43 676 848414588
[email protected]

Forward-Looking Statements and Associated Risks

All statements in this Press Release that do not directly and exclusively relate to historical facts constitute “forward-looking statements.” Such statements are subject to numerous assumptions, risks, uncertainties and other factors that could cause actual results to differ materially from those described in such statements, many of which are outside of our control, including those described in Part I, Item 1A, “Risk Factors” of the Company’s most recent Annual Report on Form 10-K, Part II, Item 1A, “Risk Factors” of the Company’s Quarterly Reports on Form 10-Q for any subsequent fiscal quarters, and any updating information or other factors which may be described in the Company’s other filings with the Securities and Exchange Commission (the “SEC”). No assurance can be given that any expectation, belief, goal or plan set forth in any forward-looking statement can or will be achieved, and readers are cautioned not to place undue reliance on such statements which speak only as of the date they are made. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date of this Press Release or to reflect the occurrence of unanticipated events. Investors should understand it is not possible to predict or identify all such factors or risks. As such, you should not consider the risks identified in the Company’s SEC filings to be a complete discussion of all potential risks or uncertainties associated with an investment in the Company.

DENTSPLY SIRONA INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share amounts)
(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
		2025			2024			2025			2024
Net sales	$	936		$	984		$	1,815		$	1,937
Cost of products sold		446			473			859			920

Gross profit		490			511			956			1,017

Selling, general, and administrative expenses		342			399			700			814
Research and development expenses		37			41			73			83
Goodwill and intangible asset impairments		235			—			235			6
Restructuring and other costs		4			21			13			22

Operating (loss) income		(128	)		50			(65	)		92

Other income and expenses:
Interest expense, net		24			17			43			35
Other expense (income), net		1			(1	)		1			(8	)

(Loss) income before income taxes		(153	)		34			(109	)		65
(Benefit) provision for income taxes		(109	)		38			(84	)		52

Net (loss) income		(44	)		(4	)		(25	)		13

Less: Net income (loss) attributable to noncontrolling interest		1			—			—			(1	)

Net (loss) income attributable to Dentsply Sirona	$	(45	)	$	(4	)	$	(25	)	$	14

(Loss) earnings per common share attributable to Dentsply Sirona:
Basic	$	(0.22	)	$	(0.02	)	$	(0.13	)	$	0.07
Diluted	$	(0.22	)	$	(0.02	)	$	(0.13	)	$	0.07

Weighted average common shares outstanding:
Basic		199.3			205.6			199.2			206.5
Diluted		199.3			205.6			199.2			207.3

DENTSPLY SIRONA INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share amounts)
(unaudited)

	June 30, 2025		December 31, 2024

Assets
Current Assets:
Cash and cash equivalents	$	359	$	272
Accounts and notes receivable-trade, net		646		556
Inventories, net		675		564
Prepaid expenses and other current assets		286		354
Total Current Assets		1,966		1,746

Property, plant, and equipment, net		840		766
Operating lease right-of-use assets, net		139		136
Identifiable intangible assets, net		1,133		1,207
Goodwill		1,528		1,597
Other noncurrent assets		463		301
Total Assets	$	6,069	$	5,753

Liabilities and Equity
Current Liabilities:
Accounts payable	$	268	$	241
Accrued liabilities		672		754
Income taxes payable		42		45
Notes payable and current portion of long-term debt		184		549
Total Current Liabilities		1,166		1,589

Long-term debt		2,218		1,586
Operating lease liabilities		92		91
Deferred income taxes		109		129
Other noncurrent liabilities		523		415
Total Liabilities		4,108		3,810

Total Equity		1,961		1,943

Total Liabilities and Equity	$	6,069	$	5,753

DENTSPLY SIRONA INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)
(unaudited)

	Six Months Ended June 30,
		2025			2024

Cash flows from operating activities:
Net (loss) income	$	(25	)	$	13

Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation		68			64
Amortization of intangible assets		99			108
Goodwill asset impairment		156			—
Indefinite-lived intangible asset impairment		79			6
Deferred income taxes		(136	)		(11	)
Stock-based compensation expense		19			23
Other non-cash expense		19			38
Changes in operating assets and liabilities:
Accounts and notes receivable-trade, net		(31	)		86
Inventories, net		(47	)		(7	)
Prepaid expenses and other current assets		26			29
Other noncurrent assets		1			(6	)
Accounts payable		(10	)		(11	)
Accrued liabilities		(35	)		(78	)
Income taxes		(55	)		(9	)
Other noncurrent liabilities		(73	)		(12	)
Net cash provided by operating activities		55			233

Cash flows from investing activities:
Capital expenditures		(51	)		(86	)
Cash received on derivative contracts		1			1
Cash paid on derivative contracts		(2	)		(9	)
Proceeds from sale of property, plant, and equipment		1			1
Net cash used in investing activities		(51	)		(93	)

Cash flows from financing activities:
Cash paid for treasury stock		—			(150	)
(Repayments) proceeds on other short-term borrowings, net		(413	)		43
Proceeds from 364-day bridge loan		435			—
Repayment of 364-day bridge loan		(435	)		0
Cash dividends paid		(64	)		(62	)
Proceeds from long-term borrowings		550			—
Repayments on long-term borrowings		(2	)		(6	)
Cash paid for deferred financing costs		(13	)		—
Other financing activities, net		(3	)		(10	)
Net cash provided by (used in) financing activities		55			(185	)
Effect of exchange rate changes on cash and cash equivalents		28			(10	)
Net increase (decrease) in cash and cash equivalents		87			(55	)
Cash and cash equivalents at beginning of period		272			334
Cash and cash equivalents at end of period	$	359		$	279

Supplemental disclosures of cash flow information:
Interest paid, net of amounts capitalized	$	13		$	44
Non-cash investing activities:
Property, plant and equipment in accounts payable at end of period	$	25		$	29
Exchange of inventory for naming and other rights	$	14		$	—

Non-GAAP Financial Measures

In addition to results determined in accordance with U.S. generally accepted accounting principles (“US GAAP”), the Company provides certain measures in this press release, described below, which are not calculated in accordance with US GAAP and therefore represent Non-GAAP financial measures. These Non-GAAP financial measures are used by the Company to measure its performance and may differ from those used by other companies. These Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, measures of financial performance prepared in accordance with US GAAP.

Management believes that these Non-GAAP financial measures are helpful as they provide a measure of the results of operations, and are frequently used by investors and analysts to evaluate the Company’s performance exclusive of certain items that impact the comparability of results from period to period, and which may not be indicative of past or future performance of the Company.

Constant Currency

The Company defines “constant currency” as the reported net sales adjusted for the impact of foreign currency changes, which is calculated by translating current period net sales using the comparable prior period’s foreign currency exchange rates.

Adjusted Operating Income and Margin

Adjusted operating income is computed by excluding the following items from operating income (loss) as reported in accordance with US GAAP:

(1) Business combination-related costs. These adjustments include costs related to consummating and integrating acquired businesses, as well as net gains and losses related to disposed businesses. In addition, this category includes the post-acquisition roll-off of fair value adjustments recorded related to business combinations, except for amortization expense of purchased intangible assets noted below. Although the Company is regularly engaged in activities to find and act on opportunities for strategic growth and enhancement of product offerings, the costs associated with these activities may vary significantly between periods based on the timing, size and complexity of acquisitions and as such may not be indicative of past and future performance of the Company.

(2) Restructuring-related charges and other costs. These adjustments include costs related to the implementation of restructuring initiatives, including but not limited to, severance costs, facility closure costs, and lease and contract termination costs, as well as related professional service costs associated with these restructuring initiatives and global transformation activity. The Company is continually seeking to take actions that could enhance its efficiency; consequently, restructuring charges may recur but are subject to significant fluctuations from period to period due to the varying levels of restructuring activity, and as such may not be indicative of past and future performance of the Company. Other costs include gains and losses on the sale of property, legal settlements, executive separation costs, write-offs of inventory as a result of product rationalization, and changes in accounting principles recorded within the period. This category also includes costs related to investigations and associated legal cases and remediation activities, which primarily include legal, accounting and other professional service fees, as well as turnover and other employee-related costs.

(3) Goodwill and intangible asset impairments. These adjustments include charges related to goodwill and intangible asset impairments.

(4) Amortization of purchased intangible assets. This adjustment includes the periodic amortization expense related to purchased intangible assets, which are recorded at fair value. Although these costs contribute to revenue generation and will recur in future periods, their amounts are significantly impacted by the timing and size of acquisitions, and as such may not be indicative of the future performance of the Company.

(5) Fair value and credit risk adjustments. These adjustments include the non-cash mark-to-market changes in fair value associated with pension assets and obligations, the credit risk component of hedging instruments, contingent consideration from past acquisitions, and equity-method investments. Although these adjustments are recurring in nature, they are subject to significant fluctuations from period to period due to changes in the underlying assumptions and market conditions. The non-service component of pension expense is a recurring item, however it is subject to significant fluctuations from period to period due to changes in actuarial assumptions, interest rates, plan changes, settlements, curtailments, and other changes in facts and circumstances. As such, these items may not be indicative of past and future performance of the Company.

Adjusted operating margin is calculated by dividing adjusted operating income by net sales.

Adjusted Gross Profit and Margin

Adjusted gross profit is computed by excluding from gross profit the impact of any of the above adjustments that affect either net sales or cost of sales.

Adjusted gross margin is calculated by dividing adjusted gross profit by net sales.

Adjusted Net Income (Loss)

Adjusted net income (loss) consists of net income (loss) as reported in accordance with US GAAP, adjusted to exclude the items identified above, as well as the related income tax impacts of those items. The income tax effect of each pre-tax adjustment was determined based on the tax rate of the jurisdiction in which the related pre-tax adjustment was recorded.

Additionally, net income is adjusted for other tax-related adjustments such as discrete or significant adjustments to valuation allowances and other uncertain tax positions, final settlement of income tax audits, discrete tax items resulting from the implementation of restructuring initiatives, the windfall or shortfall relating to exercise of employee stock-based compensation, any difference between the interim and annual effective tax rate, and adjustments relating to prior periods.

Management believes that these adjustments for certain tax-related matters are helpful to normalize the tax effects of certain discrete or significant items that are irregular or infrequent in timing and may not be indicative of past or future performance of the Company.

Adjusted EBITDA and Margin

In addition to the adjustments described above in arriving at adjusted net income, adjusted EBITDA is computed by further excluding any remaining interest expense, net, income tax expense, depreciation and amortization.

Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by net sales.

Adjusted Earnings (Loss) Per Diluted Share

Adjusted earnings (loss) per diluted share (adjusted EPS) is computed by dividing adjusted earnings (loss) attributable to Dentsply Sirona stockholders by the diluted weighted average number of common shares outstanding.

Adjusted Free Cash Flow and Conversion

The Company defines adjusted free cash flow as net cash provided by operating activities minus capital expenditures during the same period, and adjusted free cash flow conversion is defined as adjusted free cash flow divided by adjusted net income (loss). Management believes these Non-GAAP financial measures are important for use in evaluating the Company’s financial performance as it measures our ability to efficiently generate cash from our business operations relative to earnings. It should be considered in addition to, rather than as a substitute for, net income (loss) as a measure of our performance or net cash provided by operating activities as a measure of our liquidity.

DENTSPLY SIRONA INC. AND SUBSIDIARIES

(In millions, except percentages)
(unaudited)

A reconciliation of reported net sales change to change in net sales on a constant currency basis by segment is as follows:

	Three Months Ended June 30, 2025										Q2 2025 Change										Three Months Ended June 30, 2024
(in millions, except percentages)	Connected Technology Solutions		Essential Dental Solutions		Orthodontic and Implant Solutions		Wellspect Healthcare		Total		Connected Technology Solutions		Essential Dental Solutions		Orthodontic and Implant Solutions		Wellspect Healthcare		Total		Connected Technology Solutions		Essential Dental Solutions		Orthodontic and Implant Solutions		Wellspect Healthcare		Total

Net sales	$	243	$	387	$	226	$	80	$	936	(3.8	%)	2.9	%	(18.1	%)	1.2	%	(4.9	%)	$	253	$	375	$	276	$	80	$	984
Foreign exchange impact											2.1	%	1.8	%	1.3	%	3.7	%	1.8	%
Constant currency											(5.9	%)	1.1	%	(19.4	%)	(2.5	%)	(6.7	%)

^{Percentages are based on actual values and may not reconcile due to rounding.}

A reconciliation of reported net sales change to change in net sales on a constant currency basis by geographic region is as follows:

	Three Months Ended June 30, 2025								Q2 2025 Change								Three Months Ended June 30, 2024
(in millions, except percentages)	U.S.		Europe		ROW		Total		U.S.		Europe		ROW		Total		U.S.		Europe		ROW		Total

Net sales	$	293	$	404	$	239	$	936	(18.3	%)	4.3	%	0.5	%	(4.9	%)	$	360	$	387	$	237	$	984
Foreign exchange impact									—	%	4.7	%	—	%	1.8	%
Constant currency									(18.3	%)	(0.4	%)	0.5	%	(6.7	%)

Percentages are based on actual values and may not reconcile due to rounding.

DENTSPLY SIRONA INC. AND SUBSIDIARIES

(In millions, except percentages)
(unaudited)

The Company’s segment adjusted operating income for the three and six months ended June 30, 2025 and 2024 was as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)		2025			2024			2025			2024

Connected Technology Solutions	$	12		$	3		$	19		$	5
Essential Dental Solutions		151			125			287			240
Orthodontic and Implant Solutions		45			42			82			84
Wellspect Healthcare		25			24			50			47
Segment adjusted operating income		233			194			438			376

Reconciling items expense (income):
All other (a)		68			69			155			148
Goodwill and intangible asset impairments		235			—			235			6
Restructuring and other costs		4			21			13			22
Interest expense, net		24			17			43			35
Other expense (income), net		1			(1	)		1			(8	)
Amortization of intangible assets		54			54			99			108
Depreciation resulting from the fair value step-up of property, plant, and equipment from business combinations		—			—			1			—
(Loss) income before income taxes	$	(153	)	$	34		$	(109	)	$	65

^{(a) Includes unassigned corporate headquarters costs.}

DENTSPLY SIRONA INC. AND SUBSIDIARIES

(In millions, except percentages)
(unaudited)

For the three months ended June 30, 2025, a reconciliation of selected items as reported in the Condensed Consolidated Statements of Operations to adjusted Non-GAAP items is as follows:

(in millions, except percentages and per share data)	Gross Profit			Operating (loss) income			Net Income Attributable to Dentsply Sirona (a)			Diluted EPS
GAAP	$	490		$	(128	)	$	(45	)	$	(0.22	)
Non-GAAP Adjustments:
Amortization of Purchased Intangible Assets		32			54			40			0.20
Restructuring-Related Charges and Other Costs		—			5			4			—
Goodwill and Intangible Asset Impairments		—			235			214			1.07
Business Combination-Related Costs		1			4			3			0.01
Fair Value and Credit Risk Adjustments		—			—			(4	)		—
Income Tax-Related Adjustments		—			—			(108	)		(0.54	)
Adjusted Non-GAAP	$	523		$	170		$	104		$	0.52
GAAP Margin		52.4	%		(13.7	%)
Adjusted Non-GAAP Margin		55.9	%		18.2	%

Weighted average common shares outstanding used in calculating diluted GAAP net loss per common share											199.3
Weighted average common shares outstanding used in calculating diluted Non-GAAP net income per common share											199.9
(a) The tax expense on the Non-GAAP adjustments totals $145 million which is inclusive of the $(108) million income tax-related adjustment above.

^{Percentages are based on actual values and may not reconcile due to rounding.}

DENTSPLY SIRONA INC. AND SUBSIDIARIES

(In millions, except percentages)
(unaudited)

For the three months ended June 30, 2024, a reconciliation of selected items as reported in the Condensed Consolidated Statements of Operations to adjusted Non-GAAP items is as follows:

(in millions, except percentages and per share data)	Gross Profit			Operating (loss) income			Net Income Attributable to Dentsply Sirona (a)			Diluted EPS
GAAP	$	511		$	50		$	(4	)	$	(0.02	)
Non-GAAP Adjustments:
Amortization of Purchased Intangible Assets		30			54			40			0.19
Restructuring-Related Charges and Other Costs		3			35			28			0.14
Fair Value and Credit Risk Adjustments		—			—			1			—
Income Tax-Related Adjustments		—			—			36			0.18
Adjusted Non-GAAP	$	544		$	139		$	101		$	0.49
GAAP Margin		51.9	%		5.1	%
Adjusted Non-GAAP Margin		55.3	%		14.2	%

Weighted average common shares outstanding used in calculating diluted GAAP net loss per common share											205.6
Weighted average common shares outstanding used in calculating diluted Non-GAAP net income per common share											206.1
(a) The tax expense on the Non-GAAP adjustments totals $(15) million, which is inclusive of the $36 million income tax-related adjustment above.

^{Percentages are based on actual values and may not reconcile due to rounding.}

DENTSPLY SIRONA INC. AND SUBSIDIARIES

(In millions, except percentages)
(unaudited)

A reconciliation of reported net income attributable to Dentsply Sirona to adjusted EBITDA and margin for the three months ended June 30, 2025 and 2024 is as follows:

	Three Months Ended June 30,
(in millions, except percentages)		2025			2024

Net income attributable to Dentsply Sirona	$	(45	)	$	(4	)
Interest expense, net		24			17
Income tax expense		(109	)		38
Depreciation⁽¹⁾		33			32
Amortization of purchased intangible assets		54			54
Restructuring-related charges and other costs		5			35
Goodwill and intangible asset impairments		235			—
Business combination-related costs and fair value adjustments		4			—
Fair value and credit risk adjustments		(4	)		1
Adjusted EBITDA	$	197		$	173

Net sales	$	936		$	984
Adjusted EBITDA margin		21.1	%		17.5	%

^{(1) Excludes those depreciation-related amounts which were included as part of the business combination-related adjustments and Restructuring-related charges and other costs.}

^{Percentages are based on actual values and may not reconcile due to rounding}.

A reconciliation of adjusted free cash flow conversion for the three months ended June 30, 2025 and 2024 is as follows:

	Three Months Ended June 30,
(in millions, except percentages)		2025			2024

Net cash provided by operating activities	$	48		$	208
Capital expenditures		(32	)		(52	)
Adjusted free cash flow	$	16		$	156

Adjusted net income	$	104		$	101
Adjusted free cash flow conversion		15	%		155	%

Percentages are based on actual values and may not reconcile due to rounding.