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Masco Corporation (NYSE: MAS) lifts 2026 EPS guidance after strong Q2

(High)
(Neutral)
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8-K

Rhea-AI Filing Summary

Masco Corporation reported second quarter 2026 results with lower sales but significantly higher profitability. Net sales decreased 3 percent to $1,992 million, while gross margin expanded to 43.6% from 37.6% and operating margin improved to 23.6% from 20.1%.

Net income attributable to Masco increased to $318 million, and diluted EPS rose 25 percent to $1.60. On an adjusted basis, EPS grew 26 percent to $1.64 and operating margin reached 24.2%. Results included an approximately $95 million net benefit from IEEPA tariff refunds.

For the first half of 2026, net cash from operating activities increased to $417 million, and total liquidity was $1,548 million, including availability under the revolving credit facility. The company returned $454 million to shareholders through dividends and share repurchases and now expects 2026 EPS of $4.21–$4.41 and adjusted EPS of $4.40–$4.60 per share.

Positive

  • Profitability improved sharply: Q2 2026 adjusted EPS rose 26% to $1.64 and adjusted operating margin increased to 24.2% from 20.1%.
  • Guidance raised: 2026 adjusted EPS guidance was increased to $4.40–$4.60 per share from the prior $4.10–$4.30 range, reflecting IEEPA tariff refund benefits.
  • Stronger cash generation: net cash from operating activities for the first half of 2026 rose to $417 million from $148 million.

Negative

  • None.

Insights

Analyzing...

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 net sales $1,992 million Second quarter 2026 net sales, decreased 3 percent from $2,051 million in Q2 2025
Q2 2026 diluted EPS $1.60 Net income per common share (diluted) for Q2 2026 vs $1.28 in Q2 2025
Q2 2026 adjusted EPS $1.64 Net income per common share, as adjusted, up 26 percent from $1.30 in Q2 2025
Q2 2026 gross margin 43.6% Reported gross margin for the second quarter 2026 vs 37.6% in 2025
Total liquidity $1,548 million Liquidity at the end of the second quarter 2026, including revolver availability
Net cash from operating activities $417 million Net cash from operating activities for the six months ended June 30, 2026 vs $148 million in 2025
2026 adjusted EPS guidance $4.40–$4.60 per share Full-year 2026 adjusted earnings per share guidance range
IEEPA tariff refunds regulatory
"recognized a net benefit of approximately $95 million from IEEPA tariff refunds"
Refunds under the International Emergency Economic Powers Act (IEEPA) are repayments of import duties, fees, or penalties that were charged because of trade restrictions or sanctions put in place under emergency authority and later reversed, modified, or found inapplicable. For investors, these refunds can change a company’s past cash outflows and future cost structure—similar to getting a billed charge returned after a rule change—affecting reported earnings or cash available for other uses.
rationalization charges financial
"Rationalization charges 12 ... Operating profit, as adjusted"
Rationalization charges are one-time costs a company records when it restructures or simplifies operations—such as closing factories, laying off workers, consolidating offices or writing down excess inventory—to become leaner and more efficient. For investors these charges matter because they temporarily reduce reported profits but can signal future cost savings and improved competitiveness; think of paying for a home renovation now to lower monthly bills later.
working capital days financial
"Other Financial Data Working capital days Receivable days 56"
EBITDA, as adjusted financial
"EBITDA, as adjusted $ 520 ... $ 449"
A measure of a company’s operating profit that starts with earnings before interest, taxes, depreciation and amortization (EBITDA) and then removes or adds one-time items and other unusual costs or gains to show recurring business performance. It matters to investors because it aims to reveal the company’s underlying cash-generating ability—like judging a car’s usual fuel mileage after ignoring an occasional heavy load—but adjustments can vary, so compare consistently.
Net sales $1,992 million decreased 3 percent compared to the second quarter 2025
Diluted EPS $1.60 increased 25 percent from $1.28 in the second quarter 2025
Adjusted EPS $1.64 increased 26 percent from $1.30 in the second quarter 2025
Operating margin 23.6% increased 350 basis points from 20.1% in the second quarter 2025
Adjusted operating margin 24.2% increased 410 basis points from 20.1% in the second quarter 2025
Guidance

Masco expects 2026 net income per common share of $4.21–$4.41 and net income per common share, as adjusted, of $4.40–$4.60.

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FAQ

How did Masco (MAS) perform financially in the second quarter of 2026?

Masco’s Q2 2026 net sales were $1,992 million, down 3% year over year, but gross margin improved to 43.6% and operating margin to 23.6%. Diluted EPS increased 25% to $1.60 from $1.28 in Q2 2025.

What were Masco’s (MAS) adjusted earnings and margins in Q2 2026?

Adjusted Q2 2026 EPS was $1.64, up 26% from $1.30 a year earlier. Adjusted operating profit reached $482 million, and adjusted operating margin expanded to 24.2% from 20.1%, reflecting strong cost performance and the impact of IEEPA tariff refunds.

What 2026 EPS guidance did Masco (MAS) provide?

Masco expects 2026 EPS of $4.21–$4.41 per share and adjusted EPS of $4.40–$4.60. The company raised its adjusted EPS range from a previous $4.10–$4.30, citing an anticipated full-year net benefit of about $85 million from IEEPA tariff refunds.

How much cash did Masco (MAS) generate and what is its liquidity position?

For the first half of 2026, Masco generated $417 million in net cash from operating activities, up from $148 million a year earlier. Total liquidity at June 30, 2026 was $1,548 million, including cash and availability under its revolving credit facility.

How much capital did Masco (MAS) return to shareholders in 2026 so far?

Masco returned $454 million to shareholders through dividends and share repurchases, demonstrating continued focus on capital allocation. In the first six months of 2026 it also paid $129 million in cash dividends and repurchased common stock totaling $592 million of cash outflow.

How did Masco’s (MAS) segments perform in Q2 2026?

In Q2 2026, Plumbing Products net sales decreased 3% to $1,337 million, with adjusted operating margin rising to 27.0%. Decorative Architectural Products net sales declined 4% to $655 million, while adjusted operating margin improved to 22.6% from 21.6%.
0000062996false00000629962026-07-292026-07-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC  20549
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
 
Date of report (Date of earliest event reported): July 29, 2026

Masco Corporation
(Exact name of Registrant as Specified in Charter)
Delaware1-579438-1794485
(State or Other Jurisdiction of
Incorporation)
(Commission File Number)(I.R.S. Employer Identification No.)
17450 College Parkway,Livonia,Michigan48152
(Address of Principal Executive Offices)(Zip Code)
(313) 274-7400
(Registrant’s telephone number, including area code)
 
    Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $1.00 par valueMASNew York Stock Exchange

    Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).

     Emerging growth company

    If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.





Item 2.02.  Results of Operations and Financial Condition.
 
Attached and incorporated herein by reference as Exhibit 99 is a copy of the press release dated July 29, 2026 reporting Masco Corporation’s financial results for the second quarter 2026 and certain other information and supplemental information prepared for use in connection with the financial results for the second quarter 2026. On July 29, 2026, Masco Corporation will hold an investor conference call and webcast to discuss financial results for the second quarter 2026.
 
This information, including Exhibit 99 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section.

Item 9.01.  Financial Statements and Exhibits.
 
(d) Exhibits.
 
99  Press Release of Masco Corporation dated July 29, 2026 reporting Masco Corporation’s financial results for the second quarter 2026 and certain other information and supplemental information prepared for use in connection with the financial results for the second quarter 2026.

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 MASCO CORPORATION
  
  
 By:/s/ Richard J. Westenberg
 Name:
Richard J. Westenberg
 Title:
Vice President, Chief Financial Officer and Treasurer
  
July 29, 2026
2


Exhibit 99
masco_logoxgraya.jpg
 
MASCO CORPORATION REPORTS SECOND QUARTER 2026 RESULTS

Highlights
Net sales decreased 3 percent to $1,992 million
Operating profit margin was 23.6 percent; adjusted operating profit margin was 24.2 percent
Earnings per share were $1.60; adjusted earnings per share grew 26 percent to $1.64 per share
Returned $454 million to shareholders through dividends and share repurchases
Expect 2026 earnings per share in the range of $4.21 - $4.41 per share, and on an adjusted basis, $4.40 - $4.60 per share

LIVONIA, Mich. (July 29, 2026) - Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers of branded home improvement and building products, reported its second quarter 2026 results.

2026 Second Quarter Results
On a reported basis, compared to the second quarter 2025:
Net sales decreased 3 percent to $1,992 million; currency had a minimal impact
Plumbing Products’ net sales decreased 3 percent
Decorative Architectural Products’ net sales decreased 4 percent
In local currency, North American sales decreased 5 percent and International sales increased 4 percent
Gross margin increased 600 basis points to 43.6 percent from 37.6 percent
Operating profit increased 14 percent to $470 million from $412 million
Operating margin increased 350 basis points to 23.6 percent from 20.1 percent
Net income per common share increased 25 percent to $1.60, compared to $1.28
Compared to the second quarter 2025, results for key financial measures, as adjusted for certain items (see Exhibit A) and applying a normalized tax rate of 24.5 percent, were as follows:
Gross margin increased 610 basis points to 43.8 percent from 37.7 percent
Operating profit increased 17 percent to $482 million from $413 million
Operating margin increased 410 basis points to 24.2 percent from 20.1 percent
Net income per common share increased 26 percent to $1.64, compared to $1.30
Liquidity at the end of the second quarter was $1,548 million (including availability under our revolving credit facility)
“We have executed well in the first half of the year,” said Masco’s President and CEO, Jon Nudi. “While the macroeconomic and geopolitical environments remain volatile, our teams remained focused on leveraging our industry leading brands, expanding our commercial capabilities and enhancing operational excellence to deliver strong year to date results. Second quarter sales results reflect a challenging comparison to the prior year as well as targeted strategic investments to support growth. In the quarter we also recognized a net benefit of approximately $95 million from IEEPA tariff refunds, which helped to drive adjusted operating profit growth of 17% and adjusted earnings per share growth of 26%. We also returned $454 million to shareholders through dividends and share repurchases, reflecting our continued commitment to a disciplined capital allocation strategy.”

“While our underlying performance remains largely in line with our prior outlook, the anticipated full year net benefit from IEEPA tariff refunds of approximately $85 million has led us to increase our 2026 adjusted earnings per share guidance. We now expect adjusted earnings per share to be in the range of $4.40 to $4.60, compared to our previous guidance range of $4.10 to $4.30 per share,” continued Nudi. “Looking ahead, I am confident in our ability to navigate this dynamic market environment and execute our strategy to deliver above-market growth and continue creating long-term shareholder value.”







1


About Masco
Headquartered in Livonia, Michigan, Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Our portfolio of industry leading brands includes Behr® paint; Delta® and hansgrohe® faucets, bath and shower fixtures; Liberty® branded decorative and functional hardware; and HotSpring® spas. We leverage our powerful brands across product categories, sales channels and geographies to create value for our customers and shareholders. For more information about Masco Corporation, visit www.masco.com.
The 2026 second quarter supplemental material, including a presentation in PDF format, is available on the Company’s website at www.masco.com.

Conference Call Details
A conference call regarding items contained in this release is scheduled for Wednesday, July 29, 2026 at 8:00 a.m. ET. Participants in the call are asked to register five to ten minutes prior to the scheduled start time by dialing 800-715-9871 or 646-307-1963. Please use the conference identification number 3880732.
The conference call will be webcast simultaneously and in its entirety through the Company’s website. Shareholders, media representatives and others interested in Masco may participate in the webcast by registering through the Investor Relations section on the Company’s website.
A replay of the call will be available on Masco’s website or by phone by dialing 800-770-2030 or 609-800-9909. Please use the playback passcode 3880732#. The telephone replay will be available approximately two hours after the end of the call and remain available until August 28, 2026.

Safe Harbor Statement
This press release contains statements that reflect our views about our future performance and constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “outlook,” “believe,” “anticipate,” “appear,” “may,” “will,” “should,” “intend,” “plan,” “estimate,” “expect,” “assume,” “seek,” “forecast,” and similar references to future periods. Our views about future performance involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. We caution you against relying on any of these forward-looking statements.
Our future performance may be affected by the levels of residential repair and remodel activity, and to a lesser extent, new home construction, our ability to maintain our strong brands, to develop innovative products and respond to changing consumer purchasing practices and preferences, our ability to maintain our public image and reputation, our ability to maintain our competitive position in our industries, our reliance on key customers, the cost and availability of materials, our dependence on suppliers and service providers, extreme weather events and changes in climate, risks associated with our international operations and global strategies, the impact on demand, pricing and product costs resulting from tariffs, our ability to achieve the anticipated benefits of our strategic initiatives, our ability to successfully execute our acquisition strategy and integrate businesses that we have acquired and may in the future acquire, our ability to attract, develop and retain a talented workforce, risks associated with cybersecurity vulnerabilities, threats and attacks and risks associated with our reliance on information systems and technology. These and other factors are discussed in detail in Item 1A. "Risk Factors" in our most recent Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. Any forward-looking statement made by us speaks only as of the date on which it was made. 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. Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise.














2


Non-GAAP Financial Measures
This release contains both U.S. generally accepted accounted principles (“GAAP”) and certain non-GAAP financial measures. Reconciliations of these non‑GAAP measures to the most directly comparable GAAP measures are included in the accompanying financial tables.
We believe that certain non-GAAP financial measures used in managing the business may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. These non-GAAP financial measures should be considered in addition to, and not as an alternative for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies.

Investor Contact
Renee Benedict
Vice President, Investor Relations and Corporate FP&A
313.792.5500
MascoInvestorRelations@mascohq.com
# # #




3

MASCO CORPORATION
Condensed Consolidated Statements of Operations - Unaudited
For the Three and Six Months Ended June 30, 2026 and 2025
(in millions, except per common share data)
Three Months Ended June 30,Six Months Ended June 30,
 2026202520262025
Net sales$1,992 $2,051 $3,910 $3,852 
Cost of sales1,124 1,278 2,356 2,435 
Gross profit868 772 1,553 1,416 
Selling, general and administrative expenses397 361 766 719 
Operating profit470 412 787 698 
Other income (expense), net:
Interest expense(28)(26)(54)(52)
Other, net(2)(7)(2)(14)
(30)(33)(55)(66)
Income before income taxes440 378 731 632 
Income tax expense107 95 170 150 
Net income333 283 561 482 
Less: Net income attributable to noncontrolling interest15 13 30 25 
Net income attributable to Masco Corporation$318 $270 $531 $456 
Income per common share attributable to Masco Corporation (diluted):
Net income$1.60 $1.28 $2.64 $2.15 
Average diluted common shares outstanding199 211 201 212 
 
Historical information is available on our website.

Amounts may not add due to rounding.
4

MASCO CORPORATION
Exhibit A: Reconciliations - Unaudited
For the Three and Six Months Ended June 30, 2026 and 2025
(dollars in millions)
Three Months Ended June 30,Six Months Ended June 30,
 2026202520262025
Gross Profit, Selling, General and Administrative Expenses, and Operating Profit Reconciliations    
Net sales$1,992 $2,051 $3,910 $3,852 
Gross profit, as reported$868 $772 $1,553 $1,416 
Rationalization charges
Gross profit, as adjusted$872 $774 $1,563 $1,419 
Gross margin, as reported43.6 %37.6 %39.7 %36.8 %
Gross margin, as adjusted43.8 %37.7 %40.0 %36.8 %
Selling, general and administrative expenses, as reported$397 $361 $766 $719 
Rationalization charges11 
Selling, general and administrative expenses, as adjusted$390 $360 $756 $718 
Selling, general and administrative expenses as a percent of net sales, as reported19.9 %17.6 %19.6 %18.7 %
Selling, general and administrative expenses as a percent of net sales, as adjusted19.6 %17.6 %19.3 %18.6 %
Operating profit, as reported$470 $412 $787 $698 
Rationalization charges12 20 
Operating profit, as adjusted$482 $413 $807 $701 
Operating margin, as reported23.6 %20.1 %20.1 %18.1 %
Operating margin, as adjusted24.2 %20.1 %20.6 %18.2 %


Historical information is available on our website.









Amounts may not add due to rounding.
5

MASCO CORPORATION
Exhibit A: Reconciliations - Unaudited
For the Three and Six Months Ended June 30, 2026 and 2025
(in millions, except per common share data)
Three Months Ended June 30,Six Months Ended June 30,
 2026202520262025
Income Per Common Share Reconciliations
Income before income taxes, as reported$440 $378 $731 $632 
Rationalization charges12 20 
Realized losses from private equity funds, net— — — 
Income before income taxes, as adjusted452 380 751 640 
Tax at 24.5% rate (111)(93)(184)(157)
Less: Net income attributable to noncontrolling interest15 13 30 25 
Net income, as adjusted$326 $274 $537 $458 
Net income per common share, as adjusted$1.64 $1.30 $2.67 $2.16 
Average diluted common shares outstanding199 211 201 212 


Outlook for the Year Ended December 31, 2026
Year Ended December 31, 2026
Low EndHigh End
Income Per Common Share Reconciliation
Net income per common share$4.21 $4.41 
Rationalization charges
0.19 0.19 
Net income per common share, as adjusted$4.40 $4.60 

Historical information is available on our website.
Amounts may not add due to rounding.
6

MASCO CORPORATION
Condensed Consolidated Balance Sheets and Other Financial Data - Unaudited
June 30, 2026 and December 31, 2025
(dollars in millions)
June 30, 2026December 31, 2025
Balance Sheet  
Assets  
Current assets:  
Cash and cash investments$548 $647 
Receivables1,342 1,028 
Inventories1,060 1,046 
Prepaid expenses and other119 119 
Total current assets3,069 2,840 
Property and equipment, net1,191 1,195 
Goodwill618 623 
Other intangible assets, net194 205 
Operating lease right-of-use assets253 233 
Other assets77 105 
Total assets$5,401 $5,201 
Liabilities  
Current liabilities:  
Accounts payable$890 $810 
Notes payable
Accrued liabilities754 761 
Total current liabilities1,646 1,573 
Long-term debt3,245 2,945 
Noncurrent operating lease liabilities246 221 
Other liabilities383 387 
Total liabilities5,519 5,125 
Equity(118)76 
Total liabilities and equity$5,401 $5,201 

 As of June 30,
20262025
Other Financial Data  
Working capital days  
Receivable days56 55 
Inventory days85 87 
Payable days69 68 
Working capital$1,512 $1,544 
Working capital as a % of sales (LTM)
19.8 %20.1 %

Historical information is available on our website.
Amounts may not add due to rounding.
7

MASCO CORPORATION
Condensed Consolidated Statements of Cash Flows and Other Financial Data - Unaudited
For the Six Months Ended June 30, 2026 and 2025

(dollars in millions)
Six Months Ended June 30,
 20262025
Cash Flows From (For) Operating Activities:  
Cash provided by operating activities$705 $606 
Working capital changes(288)(459)
Net cash from operating activities417 148 
Cash Flows From (For) Financing Activities:  
Purchase of common stock(592)(231)
Excise tax paid on the purchase of common stock(5)(6)
Cash dividends paid(129)(132)
Dividends paid to noncontrolling interest(13)(15)
Proceeds from revolving credit borrowings, net— 46 
Proceeds from term loan300 — 
Proceeds from the exercise of stock options23 
Employee withholding taxes paid on stock-based compensation(14)(8)
Payment of debt(1)(1)
Debt financing costs(3)— 
Net cash for financing activities(433)(344)
Cash Flows From (For) Investing Activities:  
Capital expenditures(77)(68)
Other, net(1)(1)
Net cash for investing activities(78)(70)
Effect of exchange rate changes on cash and cash investments(6)22 
Cash and Cash Investments:  
Decrease for the period(100)(243)
At January 1647 634 
At June 30$548 $390 
 
 As of June 30,
 20262025
Liquidity
Cash and cash investments$548 $390 
Revolver availability1,000 954 
Total Liquidity$1,548 $1,344 
 
Historical information is available on our website.


Amounts may not add due to rounding.
8

MASCO CORPORATION
Segment Data - Unaudited
For the Three and Six Months Ended June 30, 2026 and 2025
(dollars in millions)
Three Months Ended June 30,Six Months Ended June 30,
 20262025Change20262025Change
Plumbing Products      
Net sales$1,337 $1,372 (3)%$2,700 $2,618 %
Operating profit, as reported$352 $285 $595 $509 
Operating margin, as reported26.3 %20.8 %22.0 %19.4 %
Rationalization charges16 
Operating profit, as adjusted361 286 611 513 
Operating margin, as adjusted27.0 %20.8 %22.6 %19.6 %
Depreciation and amortization30 27 59 54 
EBITDA, as adjusted$391 $314 $670 $566 
Decorative Architectural Products
Net sales$655 $679 (4)%$1,209 $1,234 (2)%
Operating profit, as reported$147 $147 $251 $236 
Operating margin, as reported22.4 %21.6 %20.8 %19.1 %
Rationalization charges— — 
Accelerated depreciation related to rationalization activity— — — 
Operating profit, as adjusted148 147 254 236 
Operating margin, as adjusted22.6 %21.6 %21.0 %19.1 %
Depreciation and amortization13 13 
EBITDA, as adjusted$155 $154 $267 $249 
Total
Net sales$1,992 $2,051 (3)%$3,910 $3,852 %
Operating profit, as reported - segment$499 $432 $847 $745 
General corporate expense, net(29)(20)(60)(47)
Operating profit, as reported470 412 787 698 
Operating margin, as reported23.6 %20.1 %20.1 %18.1 %
Rationalization charges - segment10 17 
Rationalization charges - other— — 
Accelerated depreciation related to rationalization activity - segment— — — 
Operating profit, as adjusted482 413 807 701 
Operating margin, as adjusted24.2 %20.1 %20.6 %18.2 %
Depreciation and amortization - segment37 34 72 67 
Depreciation and amortization - other
EBITDA, as adjusted$520 $449 $881 $772 

Historical information is available on our website.
Amounts may not add due to rounding.
9

Filing Exhibits & Attachments

4 documents