3. CFP Divestiture

On September 27, 2025 the Company completed the sale of the outstanding equity interest in Guwing Holdings Pty. Ltd. ("Guwing"), and Guwing's 100% ownership of the share capital of Custom Fluidpower Pty. Ltd. ("CFP") to a non-related party (the "Divestiture"). CFP was acquired in August 2018 and expanded the Company's hydraulics operations and footprint in Asia-Pacific Region ("APAC"). Since acquiring CFP, we have further invested in the APAC region as part of our "in the region for the region" strategy and have expanded manufacturing and design engineering capabilities.

The preliminary sales price for the divestiture was $76,664,880 AUD in cash including adjustments for estimated closing date net working capital and cash on hand, consisting of $60,501,522 AUD in cash to the Company and $16,163,358 AUD that the buyer agreed to pay directly to the Company’s lender in satisfaction of subsidiary-level debt. The sales price is subject to adjustments based on the final closing date net working capital and cash on hand of the divested business.

As of September 27, 2025, the Company recorded a receivable of $38.4 USD for proceeds to be received directly from the buyer, which was subsequently settled when the buyer remitted payment on October 1, 2025. These receivables are presented on the Consolidated Balance Sheet for the period ending September 27, 2025. The Company also recorded a receivable of $1.3 USD for proceeds that were held back from initial funding and are to be paid no later than two years from the completion of the transaction. The hold back amount is not held in escrow and not subject to interest. It is not contingent on any performance obligation, but will be used to settle claims made by the buyer per the terms of the purchase agreement for a matter that existed pre-close, provided the Company agrees or the matter is solved through arbitration. No claims have been identified as of the period end date and future claims are not probable or estimable. Therefore, no provision has been made for potential claims. This receivable is presented within Other assets on the Consolidated Balance Sheet for the period ending September 27, 2025. There was no impact on the Company’s cash flows in the current period.

The Company recognized (i) a pre-tax gain net of costs to sell on the sale of the subsidiary’s net assets and (ii) a reclassification of the cumulative translation adjustment ("CTA") related to the subsidiary from accumulated other comprehensive income ("AOCI") to earnings, as required by ASC 830-30 when a foreign operation is sold or substantially liquidated. The gain on sale and the reclassification of CTA were presented together in continuing operations (see table below) and are included in Other non-operating income, net on the Consolidated Statement of Operations for the three and nine months ended September 27, 2025. The components of the pre-tax gain recognized in USD were:

• Proceeds to be received from sale, net of $10.5 outstanding CFP debt (all cash): $39.7.

• Carrying value of net assets disposed: $29.3. The carrying amounts of the assets and liabilities of the disposal group were as follows:

• Pre-tax gain net of $0.3 costs to sell on disposal before reclassification of CTA: $21.0.

• Reclassification of CTA (AOCI to earnings): $2.2.

• Pre-tax gain recognized in continuing operations: $18.8.

• Income tax expense related to the gain and reclassification of CTA: $3.5.

• Net gain after tax recognized in continuing operations: $15.2.

The subsidiary was included in continuing operations because the sale did not meet the criteria to be reported as discontinued operations under ASC 205-20. The net income of the disposal group through the completion date is included in the Company's Consolidated Statements of Operations. The pre-tax income of the disposal group for the three months ended September 27, 2025 and September 28, 2024 was $0.6 and $1.4 respectively, excluding the reclassification of CTA. For the nine months ended September 27, 2025 and September 28, 2024, pre-tax profit of the disposal group was $2.3 and $2.8 respectively, excluding the reclassification of CTA. The pre-tax gain on disposal and the reclassification of CTA are not included in the segment results as the elements of the pre-tax gain are not used by the chief operating decision maker (CODM) for assessing Hydraulics segment performance.