ANDE 10-K & 10-Q changes, risk factors and insider trading

Our Trade, RenewablesAgribusiness and Nutrient & IndustrialRenewables businesses buy, sell and hold inventories of agricultural input and output commodities, some of which are readily traded on commodity futures exchanges. Unfavorable weather conditions, both local and worldwide, as well as other factors beyond our control, can affect the supply and demand of these commodities and expose us to liquidity pressures to finance hedges in the commodity business in rapidly rising markets. In our NutrientAgribusiness & Industrial business,segment, changes in the supply and demand of these commodities can also affect the value of inventories that we hold, as well as the price of raw materials as we are unable to effectively hedge these commodities. Increased inventory and raw material costs would decrease our profit margins and adversely affect our results of operations.

Potash, phosphate and nitrogen - Raw materials used by nutrient business within the NutrientAgribusiness & Industrial businesssegment include potash, phosphate and nitrogen, for which prices can be volatile and are driven by global and local supply and demand factors. Significant increases in the price of these commodities may result in lower customer demand and higher than optimal inventory levels. In contrast, reductions in the price of these commodities may create lower of cost or net realizable value adjustments to inventories.

A significant part of our operations is regulated by environmental laws and regulations, including those governing the labeling, use, storage, discharge and disposal of hazardous materials. Because we use and handle hazardous substances in our businesses, changes in environmental requirements or an unanticipated significant adverse environmental event could have an adverse effect on our business. We cannot assure that we have been, or will at all times be, in compliance with all environmental requirements, or that we will not incur costs or liabilities in connection with these requirements. Private parties, including current and former employees, could bring personal injury or other claims against us due to the presence of, or exposure to, hazardous substances used, stored or disposed of by us, or contained in our products. We are also exposed to residual risk because some of the facilities and land which we have acquired may have environmental liabilities arising from their prior use. In addition, changes to environmental regulations may require us to modify our existing plant and processing facilities which could significantly increase the cost of those operations.

We are required to carry significant amounts of inventory across all of our businesses. If a substantial portion of our inventory becomes damaged or obsolete, its value would decrease, and have an adverse impact on the Company's financial results.

We are exposed to the risk of a decrease in the value of our inventories due to a variety of circumstances in all of our businesses. For example, within ourboth TradeAgribusiness and Renewables businesses,Renewables, there is the risk that the quality of our inventory could deteriorate due to damage, moisture, insects, disease, or foreign material. If the quality of our inventory were to deteriorate below an acceptable level, the value of our inventory could decrease significantly. In our Nutrient & Industrial business, plantedPlanted acreage, and consequently the volume of fertilizer and crop protection products applied, is partially dependent upon government programs and the producer's perception of demand. Technological advances in agriculture, such as genetically engineered seeds that resist disease and insects, or that meet certain nutritional requirements, could also affect the demand for our crop nutrients and crop protection products. Any of these factors could render some of our inventory obsolete or reduce its value.

The markets for our products in eachboth of our business segments are highly competitive. While we have substantial operations in certain of the regions where we operate, some of our competitors are significantly larger, compete in wider markets, have greater purchasing power, and have considerably larger financial resources. We also may enter into new markets where our brand is not recognized and in which we do not have an established customer base. Competitive pressures in all of our businesses could affect the price of, and customer demand for, our products, thereby negatively impacting our profit margins and resulting in a loss of market share.

Our TradeAgribusiness and Renewables businesses use derivative contracts to reduce the impact of volatility in the commodity markets. Non-performance by the counterparties to those contracts could adversely affect our future results of operations and financial position.

A significant number of purchases and sales within the TradeAgribusiness and Renewables segments are made through forward contracting, much of which includes a natural back-to-back hedging relationship. In addition, the Company uses exchange traded and, to a lesser degree, over-the-counter contracts to further reduce volatility in changing commodity prices. A significant adverse change in commodity prices could cause a counterparty of one or more of our derivative contracts to not perform on its obligation.

With our international merchandising business we have additional country risk through trade flows around the globe with direct exposure to the counterparty, via contract mark-to-market exposure, unsecured accounts receivable or inventory in the country. In certain areas in which we trade (both origination and destination), country risk ismay be more prevalent given the country’s political and/or economic situations like Russia’s invasion of Ukraine.situations. With the purchases and sales of grain in vessel sized quantities within the international merchandising business increases the size and potential severity of our country risk. Additionally, there could be a rapid increase in interest rates making it difficult for our counterparties to access U.S. dollars to allow us to collect on accounts receivable timely. We have engaged third parties to provide assessments of country risk and business ratings driven by economic indicators. We also have established counterparty credit limits and various monitoring agreements. Additionally, we have a diverse customer base and have the ability to divert cargo in transit to another counterparty, country, or region to limit the exposure of a material financial loss.

The Company has several aging assets that require continual maintenance to remain reliable and safe to operate. Mitigating asset structural integrity risk is critical to avoid property damage claims, business interruptions, and injuries. Engineers undertake inspections of assets regularly and based on the nature of our business there are some heightened risks. For example, risk of bin failures and fires in bins are mitigated by exercising caution with moving grain and controlling temperatures, respectively. We also have an increased focus on safety and training employees to be able to identify potential safety and asset integrity issues. We also are undergoing capital spending allocations to ensure that proper maintenance can occur timely. To help mitigate losses in the event of a claim, we are insured under several policies, including but not limited to inventory, property, liability and business interruption policies.coverage. However, these policies are subject to deductibles and certain limits. Although we believe we have appropriate levels of insurance to cover material losses, if we continue to experience insurable claims, our annual insurance premiums could increase, and some insurance carriers may cease to cover us. Obtaining adequate insurance at that point could have additional costs and lesser coverage. Then, the occurrence of a claim, could have a material adverse effect on our reputation, financial condition and results of operations.

Adverse weather conditions have historically caused volatility in the agricultural commodity industry and consequently in our operating results by causing crop failures or significantly reduced harvests, which may affect the supply and pricing of the agricultural commodities that we sell and use in our business, reduce demand for our fertilizer products and negatively affect the creditworthiness of agricultural producers who do business with us. AWhile the Company continues to expand its geographic footprint, a significant portion of the Company's assets are still exposed to conditions in the Eastern Grain Belt. In this region, adverse weather during the fertilizer application, planting, and harvest seasons can have negative impacts on our Trade, Renewables,Agribusiness and Nutrient & IndustrialRenewables businesses. Higher basis levels or adverse crop conditions in the Eastern Grain Belt can increase the input costs or lower the market value of our products relative to other market participants that do not have the same geographic concentration.

As aan agricultural company, we assess the potential impacts of our business by environmental risks including climate change, greenhouse gas emissions and other environmental issues. The Company, through our Enterprise Risk Management ("ERM") program and other efforts, is actively focused on implementing responsible practices to reduce environmental risks while complying with evolving laws and regulations. We have participated with customers in sustainable sourcing pilot projects which provides farming operations greater visibility into their sustainability activities. If we are unable to properly assess these risks and meet our appropriate disclosure requirements, or if our efforts are considered to be inadequate, then stakeholders, the industry, and investors might perceive that we are not responding appropriately and responsibly. As a result, investors may reconsider their capital investments, and our reputation could be diminished leading to customers and suppliers choosing to refrain from engaging in business with us.

The Company faces transition risks and physical risks related to climate change.change and electrification.

WithIn the increased regulations and opportunity of electric vehicles comes the transitional risk that biofuels are in lower demand due to environmental concerns with climate change and changing consumer behavior. While biofuels also have less carbon emissions than regular gasoline, electric vehicles have the lowest emissions. A decrease in demand for biofuels asaddition, a result of regulatory or market changes would result in ethanol plants being underutilized along with a lower demand for corn to be used in ethanol production. The decrease in corn demand for ethanol production wouldcould meanalso impact our Agribusiness segment if it resulted in a greater supply of corn for human and livestock consumption, driving down food costs and could lowerpotentially overall grain prices. From a physical risk standpoint, there is increased land acreage that was historically used for growing corn that is being left unplanted as there is belief that the empty farmland is aiding in absorbing carbon dioxide. This would result in decreased agriculture productivity, reducing the amount of fertilizers needed and grains harvested. There are many assumptions both domestically and internationally driving the impact of supply and demand for corn, soybeans and other grains so it is too early to quantify the transition and physical risks involved with the gradual shift to electrification and the environmental regulatory changes. Although we believe that many regions both domestically and internationally will still rely on biofuels as they are slower to make changes and might not have immediate resources to do so, we cannot be certain about the pace and nature of changes in the industry and how it will impact demand for our products. These environmental changes could be costly and adversely affect our facilities, financial position and results of operations. While our Company believes that we are strategically positioned so that we can assess our role in actively reducing environmental risks while remaining focused on being a leader in the merchandising of grains and other co-products domestically and internationally, it is not possible to predict exactly how a changing climate will impact our business. If our strategies prove ineffective, our business could be adversely affected.

We are in the process of reviewing our systems roadmap, to help standardize processes and support growth initiatives. This will likely result in potential system implementations as part of our ongoing information technology transformation strategy, and we plan to implement these systems throughout relevant parts of our business. If we do not allocate and effectively manage the resources necessary to explore, build and sustain the proper information technology infrastructure, or if we fail to achieve the expected benefits from this initiative, it may impact our ability to process transactions accurately and remain aligned with the changing needs of our business. In addition, failure to deliver the applications on time or anticipate the necessary readiness and training needs could lead to business disruption, and loss of customers and employees. In connection with potential implementations and resulting business process changes, we will continue to enhance the design and documentation of business processes and controls, including our internal control over financial reporting processes, to maintain effective controls over financial reporting.

Additionally, outside parties may attempt to destroy critical information, or fraudulently induce employees, third-party service providers, or users to disclose sensitive information to gain access to our data or our users' data. Notwithstanding the attention the Company pays to cybersecurity risks and the processes and controls implemented, the Company may not be successful in preventing or mitigating a cybersecurity incident. As with all companies, these security measures are subject to third-party security breaches, employee error, malfeasance, faulty password management, or other irregularities.irregularities from time to time. Cybersecurity risks rapidly evolve and are complex, so the Company must continually adapt and enhance processes and controls. As the Company does this, management must make judgments about where to invest resources to protect the Company and our assets most effectively. These are inherently challenging processes, and management can provide no assurance that the processes and controls implemented will be effective or that we will be able to prevent, repel or mitigate the effects of such an attack by outside parties. The Company also relies on third parties to maintain and process certain information which could be subject to breach or unauthorized access to Company or employee information. We must rely on these entities for adequately detecting and reporting cyber incidents, in which delays could disrupt our operations or potentially affect our ability to report or respond to cybersecurity incidents effectively or in a timely manner. Any such incident to the Company or a third party could result in an inability to perform critical functions, significant legal and financial exposure, damage to our reputation, and a loss of confidence in the security of our services that could potentially have an adverse effect on our business.

We continue to assess the impact of various U.S. federal, state, local, and international legislative proposals that could result in a material increase to our U.S. federal, state, local and/or international taxes. We cannot predict what impact, if any, changes in federal policy, including tax policies, will have on our industry or whether any specific legislation will be enacted or the terms The Andersons, Inc. | 2025 Form 10-K | 12 of any such legislation. However, if such proposals were to be enacted, or if modifications were to be made to certain existing regulations, the consequences could have a material adverse impact on us, including increasing our tax burden, increasing our cost of tax compliance or otherwise adversely affecting our financial position, results of operations, cash flows and liquidity. Changes in applicable U.S. or foreign tax laws and regulations, or their interpretation and application, including the possibility of retroactive effect, could affect our tax expense and profitability. Such impact may also be affected positively or negatively by subsequent potential judicial interpretation or related regulation or legislation which cannot be predicted with certainty.

Operating results for the TradeAgribusiness segment weredecreased generallyby consistent$52.2 withmillion from the prior year results. Sales and merchandising revenues decreased $2,804.0$196.4 million and cost of sales and merchandising revenues decreased by $2,797.7$230.3 million resulting in a decrease$33.9 million increase in gross profitprofit. of $6.3 million. A majority of theThe decrease in sales and merchandising revenues and cost of sales and merchandising revenues can be attributed to reduced commodity prices across our business lines as the worldwide balance of supply and demand of commodities has reduced volatility and is now paying to store and hold grain. The investment in Skyland in the fourth quarter of 2024 partially offset theboth reduced commodity prices and the intentional pull back on volumes in the internationalCompany's legacy footprint. This decrease in the legacy business aswas partially offset by the acquiredincrease entity provided an additional $89.8 million ofin sales and merchandising revenues and $71.9 million of cost of sales and merchandising revenues forfrom the two-monthfull periodyear impact of our Skyland investment, which we acquired in whichNovember it2024 wasand consolidated.added $468.0 million and $392.0 million, respectively in 2025. Gross profit decreasedincreased slightlyby $33.9 million from the prior year.year Thewith asset based business realized $15.7$76.0 million less in insurance recoveries andof the merchandisingincrease business experienced less trading opportunities inas a limitedresult volatilityof market.additional TheseSkyland weregross profit, which was partially offset by thereduced additional gross profitresults from theour Skylandlegacy acquisitionasset and improvedmerchandising resultsbusinesses infrom thelimited premiumtrade ingredientsflows business.due to a surplus of grain supplies and weak customer demand.

Operating, administrative and general expenses increased $7.9$68.8 million compared to prior yearyear, results.with Thesubstantially increaseall fromof the prior year is primarilyincrease related to $12.8the million of additional costs related to two months ofacquired Skyland operating cost which was partially offset by a $6.7 million decrease in incentives.business.

Interest expense decreasedincreased $10.6by million$12.6 million, with substantially all of the increase due to reducedincreased short-termborrowing borrowingsrelated fromto lowerthe commodityacquired prices.Skyland business.

InterestAsset expense,impairment netcharges decreasedincreased by $3.5$3.4 million from the prior year due to thea deconsolidationcharge ofrelated ELEMENTto non-recourseequipment debt.used in corn oil refinement.

OtherInterest income,expense, net increased by $4.1$2.9 million andfrom wasgreater mainlyborrowings due to anless additionalcash $2.3on millionhand as a result of the acquisition of the remaining interest income recognized in 2024.TAMH.

In 2024,2025, the Company recorded Incomeincome tax expense from continuing operations of $30.1$22.2 million. The Company's effective rate for 20242025 was 15.0%15.7% on Income before income taxes from continuing operations of $200.8$141.5 million. The difference between the 15.0%15.7% effective tax rate and the U.S. federal statutory tax rate of 21% is primarily attributable to the tax impact of non-controllingnoncontrolling interestinterest, nontaxable clean fuel production credits and U.S.the federalreversal of certain unrecognized tax creditsbenefits, partially offset by state and local incometaxes, taxes,nondeductible compensation, and valuation allowances on losses in foreign tax impacts of foreign operations, and nondeductible compensation.jurisdictions.

In 2023,2024, the Company recorded Incomeincome tax expense from continuing operations of $37.0$30.1 million. The Company’s effective rate for 20232024 was 21.8%15.0% on Income before income taxes from continuing operations of $169.6$200.8 million. The difference between the 21.8%15.0% effective tax rate and the U.S. federal statutory tax rate of 21% is primarily attributable to the tax impact of noncontrolling interest and U.S. federal tax credits partially offset by state and local income taxestaxes, tax impacts of foreign operations, and changesnondeductible in unrecognized tax benefits offset by the effect of non-controlling interest and foreign tax credits.compensation.

The Company and itsCompany’s subsidiary partnership returns are under U.S. federal and certain state tax examination by the Internal Revenue Service ("IRS")examinations for tax years 2018 through 2021.2022. The Company’s subsidiary is under federal tax examination by the Mexican tax authorities for tax year 2015. The IRSU.S. federal, state, and Mexican tax authorities’ examinations could potentially be resolved within the next 12 months. The resolution of these examinations could change our unrecognized tax benefits and favorably impact income tax expense by a range of $3.3 millionzero to $14.2$2.8 million.

On December 20, 2021, the Organization for Economic Co-operation and Development ("OECD") issued Pillar Two model rules introducing a global minimum tax of 15% on large corporations. Although the U.S. has not yet adopted the Pillar Two model rules, several foreign countries have enacted legislation in 2023 which closely followfollows OECD’s Pillar Two guidance to be effective January 1, 2024.guidance. The impact of Pillar Two legislation in our relevant jurisdictions is immaterial to the Company's 20242025 effective tax rate.

The critical accounting policies and critical accounting estimates, as described in the 2025 Form 10-K, have not materially changed through the firstsecond quarter of 2026.

Total Agribusiness grain storage capacity at company-owned or leased grain facilities, including temporary pile storage, was approximately 266 million and 280278 million bushels at MarchJune 31,30, 2026 and 2025, respectively. The storage capacity at our nutrient facilities was evenly split between dry and liquid storage with a total capacity of approximately one million tons at MarchJune 31,30, 2026 and 2025.

The Renewables segment'ssegment firstachieved its highest second quarter operating results improvedto fromdate the prior year as a result ofon efficient plant operations and recordimproved production.margins. EthanolStrong ethanol export demand and healthy domestic consumption drove higher board crush highermargins yearyear-over-year, over year but waspartially offset by firmer corn basis andlevels. higher natural gas expense. FirstSecond quarter results include $26.2$24.2 million of Section 45Z clean fuel production credits. As expected, each of the ethanol plants qualified for the next tier of credits following rule changes effective in 2026. TheOur merchandising businesses hadalso delivered improved performance,results, largelybenefiting drivenfrom bymarket volatility surrounding the Renewable Volume ObligationsObligation ("RVO") announcement, resulting in higher distillers corn oil and Renewable Identification Number ("RIN") values.

Ethanol market fundamentals continue to beremain supportive as we anticipate elevatedcontinued strong demand, includingdriven by increasing global blend rates, high gasoline prices,rates and plannedfavorable industrydomestic maintenance.blending economics. Renewable feedstocks shouldare also continueexpected to benefit from thehealthy robustbio-based RVO.diesel demand and supportive renewable fuel markets.

Comparison of the three months ended MarchJune 31,30, 2026, with the three months ended MarchJune 31,30, 2025, including a reconciliation of GAAP to non-GAAP measures:

The Company uses Income (loss) before income taxes attributable to the Company, a non-GAAP financial measure as defined by the Securities and Exchange Commission, to evaluate the Company’s financial performance. This performance measure is not defined by accounting principles generally accepted in the United States and should be considered in addition to, and not in lieu of, GAAP financial measures. Management believes that Income (loss) before income taxes attributable to the Company is a useful measure of the Company’s performance as it provides investors additional information about the Company's operations, allowing evaluation of underlying business performance and period-to-period comparability. This measure is not intended to replace or be an alternative to Income (loss) before income taxes, the most directly comparable amountsmeasure reported under GAAP.

Operating results for the Agribusiness segment increased byfrom $16.4the millionsame fromperiod of the prior year. Sales and merchandising revenues decreased by $73.3$301.7 million,million and cost of sales and merchandising revenues decreased by $88.6$316.5 million forresulting anin increased gross profit impact of $15.3$14.7 million. The modestmajority decreaseof the decreases in sales and merchandising revenues and the related cost of sales and merchandising revenues canwere be attributedattributable to lowerthe salesCompany's volumesongoing portfolio optimization efforts, including actions taken to reduce its participation in theunderperforming merchandising businesses. TheGross $15.3profit increased $14.7 million improvementcompared in gross profit fromto the prior year reflectsperiod, primarily due to a $9.8 million improvement in the Company’sCompany's merchandising businessesbusinesses, fromdriven recentby capitalhigher investmentscommodity prices and favorable market conditions,volatility alongearly within athe $5.0quarter. millionAdditionally, recent growth investments contributed positively to gross profit, while ongoing portfolio optimization efforts improved overall profitability. These benefits were partially offset by higher fuel surcharge costs. The year-over-year increase also reflects modest improvements in gross profit across the Nutrientremainder of the Company's business driven by stronger margins.portfolio.

InterestOperating, expenseadministrative and general expenses increased by $0.9$8.1 million, dueprimarily todriven by increased borrowingsincentives onfrom the Company's revolvingstrong creditoperating facility.performance.

Other income, net increased by $25.2$23.7 million compared to the prior year, primarily drivendue byto the recognition of $26.2$24.2 million of clean fuel production credits recognized in the current year.

Results declined by $1.1$6.0 million, primarily due to increased incentive costs driven by improved results.Renewables results along with a $1.5 million impairment charge on a cost method investment.

For the three months ended MarchJune 31,30, 2026, the Company recorded an income tax expense of $4.6$13.4 million. The Company's effective tax rate was 13.5%19.9% on income before taxes of $33.9$67.3 million. The difference between the 13.5%19.9% effective tax rate and the U.S. federal statutory tax rate of 21.0%21% is primarily attributable to nontaxable clean fuel production credits offset by state and local incometaxes, taxesnondeductible compensation, valuation allowances on losses in foreign tax jurisdictions, and nondeductibleother compensation.taxes.

For the three months ended MarchJune 31,30, 2025, the Company recorded an income tax benefitexpense of $2.1$8.0 million. The Company’sCompany's effective tax rate was (65.9)%32.3% on income before income taxes of $3.2$24.8 million. The difference between the (65.9)%32.3% effective tax rate and the U.S. federal statutory tax rate of 21.0% was primarily attributable to ainterest discreteaccrued adjustment ofon unrecognized tax benefits related to prior period U.S. federal research and developmentvaluation allowances on losses in foreign tax credits.jurisdictions offset by the tax impact of noncontrolling interest.

The Company and its subsidiary partnership returns are under U.S. federal and certain state tax examinations for tax years 2018 through 2024. The Company’s subsidiary is under federal tax examination by the Mexican tax authorities for tax year 2015. The U.S. federal, state, and Mexican tax authorities’ examinations could potentially be resolved within the next 12 months. The resolution of theseongoing examinations and the expiration of applicable statutes of limitations could change our unrecognized tax benefits and favorably impact income tax expense by a range of zero to $8.7$10.2 million.

On December 20, 2021, the Organization for Economic Co-operation and Development ("OECD") issued Pillar Two model rules introducing a global minimum tax of 15% on large corporations. Although the U.S. has not adopted the Pillar Two model rules, several foreign countries have enacted legislation which closely follows OECD’s Pillar Two guidance. Additional OECD guidance issued on January 5, 2026 introduced a "side-by-side" framework which provides relief from certain Pillar Two charging provisions for eligible U.S.-parented multinational groups while keeping foreign country minimum tax regimes in place. Future enactment of the OECD's "side-by-side" framework by our relevant jurisdictions is expected to reduce the Company's exposure to UTPR-related taxes. The impact of other Pillar Two legislationrelated in our relevant jurisdictionstaxes is not expected to materially affectimpact the Company's effective tax rate for 2026.rate.

At MarchJune 31,30, 2026, the Company had working capital of $686.5$702.7 million, a decrease of $408.0$392.1 million from the prior year. This decrease was attributable to changes in the following components of current assets and current liabilities:

As of MarchJune 31,30, 2026, current assets increaseddecreased by $28.4$93.7 million compared to the prior year, primarily driven by higherlower inventorycash valueson resultinghand of $284.4 million from increasedthe commodityprior prices and an additional $62.0 million of clean fuel production credits in Other current assets. These increases were partially offset by a $146.8 million decrease in cashyear related to the acquisition of the remaining interest in TAMH later in 2025. The decrease in cash on hand was partially offset by a $189.1 million increase in inventory as a result of increased commodity prices compared to the prior year.

Current liabilities increased $436.3$298.5 million year over year, primarily driven by $493.8$209.9 million of additional borrowings under the Company's revolving credit facilities, reflecting lower cash balances than the prior year following the TAMH transaction and increased market volatility in 2026. The increase in short‑term debt was partially offset by lower current maturities of long‑term debt due to the timing of scheduled debt maturities.

Operating activities usedprovided $393.7$94.2 million of cash during the first threesix months of 2026, compared to $350.0$50.7 million of cash used in the same period of 2025. The $43.7$144.9 million year-over-year increase in cash useprovided was primarily attributable to a $54.8$63.7 million unfavorablefavorable shift in operating assets and liabilities through normal business operations, partiallya offset$61.1 bymillion strongerimprovement to earnings in the current year.year, Excludingand the changesimpact of $15.7 million of noncash impairment charges recognized in operatingthe assets and liabilities, cash generation from operations has improved from priorcurrent year.

Investing activities used $49.5$123.3 million of cash during the first threesix months of 2026, up from $43.8$75.7 million in the prior year. The $5.6$47.6 million increase was primarily drivenattributable byto $5.2$31.9 million in higher capital expenditures related to support previously announced growth initiatives.initiatives along with $12.9 million of additional property insurance proceeds received in the prior year. Management expects to invest approximately $225 million in property, plant, and equipment in 2026; roughly split 50% between growth and maintenance capital.

Cash provided by financingFinancing activities totaledused $417.8$2.2 million forof cash during the threesix months ended MarchJune 31,30, 2026, compared to $50.4$87.0 million for the same period in 2025. The $367.3$84.8 million year-over-year increasereduction was primarily driven by $411.5130.3 million of additional borrowings on the Company's short-term lines of credit. This was partially offset by additional net payments of long-term debt of $36.8$34.8 million from the prior year.

The Company paid $6.8$13.6 million in dividends in the first threesix months of 2026 compared to $6.7$13.4 million paid in the prior period. The Company paid dividends of $0.20 and $0.195 per common share in January and April of 2026 and 2025, respectively. On FebruaryJune 12,18, 2026, the Company declared a cash dividend of $0.20 per common share, payable on AprilJuly 22, 2026, to shareholders of record on AprilJuly 1, 2026.