The increase was primarily driven by $3.0 million of higher salaries and benefits (including $1.5 million higher salaries, $1.0 million higher benefits/medical, and $0.5 million higher recruiting and relocation), $1.6 million of higher professional, audit and legal fees, and $0.5 million higher travel and entertainment.

filing / Aug 4, 2026 / receipt

The increase also reflected higher travel and entertainment, and commissions. Bonus expense was also higher in 2026, including $1.3 million in the first half of 2026 due to a bonus reversal recorded in the first quarter of 2025 that did not recur.

filing / Aug 4, 2026 / receipt

The decrease primarily reflects operating leverage on higher sales volumes (net sales increased 21.4%), automation-driven productivity improvements, and the late-2025 transition of certain manufacturing activities from the Company’s Pingguo, PRC facility to an outside subcontractor, which shifted a portion of costs from direct labor to materials.

filing / Aug 4, 2026 / receipt

Our future operating results will depend, in part, on our continued ability to manage these fluctuations through pricing actions, cost savings initiatives and sourcing decisions.

filing / Aug 4, 2026 / receipt

We did not incur material restructuring charges as a result of this realignment. For comparability, prior‑period segment information has been recast to conform to the current period presentation.

filing / Aug 4, 2026 / receipt

Restructuring charges 24 Earnout liability adjustment 233 Interest expense 1,802 Interest income ( 1,280 ) Other income, net 137 Earnings before provision for income taxes $ 37,760 Three Months Ended June 30, 2026 Aerospace, Defense & Rugged Solutions Industrial Technology & Data Solutions Reportable Segment Total Corporate and Other Total Consolidated Total Assets $ 682,388 $ 26

filing / Aug 4, 2026 / receipt

The decrease primarily reflects operating leverage on higher sales volumes (net sales increased 17.2%), automation-driven productivity improvements, and the late-2025 transition of certain manufacturing activities from the Company’s Pingguo, PRC facility to an outside subcontractor, which shifted a portion of costs from direct labor to materials.

filing / May 5, 2026 / receipt

Our future operating results will depend, in part, on our continued ability to manage these fluctuations through pricing actions, cost savings initiatives and sourcing decisions.

filing / May 5, 2026 / receipt

We did not incur material restructuring charges as a result of this realignment. For comparability, prior‑period segment information has been recast to conform to the current period presentation.

filing / May 5, 2026 / receipt

Severance costs $ 85 $ 76 $ ( 45 ) $ 116 Other restructuring costs 674 - ( 351 ) 323 Total $ 759 $ 76 $ ( 396 ) $ 439 The balance of accrued restructuring costs at March 31, 2026 is primarily related to remaining liabilities associated with the Company's facility consolidation project in China where multiple Industrial Technology & Data Solutions manufacturing sites were consolidated.

filing / May 5, 2026 / receipt