Slides
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Third Quarter Results Fiscal Year 2026 February 11, 2026
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Pieter Sikkel President and Chief Executive Officer Dustin Styons Executive Vice President and Chief Financial Officer Our Presenters 2
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Forward-looking Statements and Other Matters 3 Cautionary Statement Regarding Forward-Looking Statements. This presentation includes statements regarding expectations of our performance or other matters that may affect our business, results of operations, or financial condition are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements, which are based on current expectations of future events, may be identified by the use of words such as "guidance", "strategy," "expects," "continues," "plans," "anticipates," "believes," "will," "estimates," "intends," "projects," "goals," "targets," and other words of similar meaning. These statements also may be identified by the fact that they do not relate strictly to historical or current facts. If underlying assumptions prove inaccurate, or if known or unknown risks or uncertainties materialize, actual results could vary materially from those anticipated, estimated, or projected. These risks and uncertainties include those discussed in our Annual Report on Form 10-K for the year ended March 31, 2025, our most recent Quarterly Report on Form 10-Q, and in our other filings with the Securities and Exchange Commission. These risks and uncertainties include: our reliance on a small number of significant customers; continued vertical integration by our customers; global shifts in sourcing customer requirements; the imposition of tariffs and other changes in international trade policies; shifts in the global supply and demand position for tobacco products; variation in our financial results due to growing conditions, customer indications and other factors; loss of confidence in us by our customers, farmers and other suppliers; migration of suppliers who have historically grown tobacco and from whom we have purchased tobacco toward growing other crops; risks related to our advancement of inputs to tobacco suppliers to be settled upon the suppliers delivering us unprocessed tobacco at the end of the growing season; risks that the tobacco we purchase directly from suppliers will not meet our customers’ quality and quantity requirements; weather and other environmental conditions that can affect the quantity and marketability of our inventory; international business risks, including unsettled political conditions, uncertainty in the enforcement of legal obligations, including the collection of accounts receivable, fraud risks, expropriation, import and export restrictions, exchange controls, inflationary economies, currency risks and risks related to the restrictions on repatriation of earnings or proceeds from liquidated assets of foreign subsidiaries; many of our operations are located in jurisdictions that pose a high risk of potential violations of the Foreign Corrupt Practices Act; risks and uncertainties related to geopolitical conflicts, including the conflicts in the Middle East and disruptions affecting shipping in that area; impacts of international sanctions on our ability to sell or source tobacco in certain regions; exposure to foreign tax regimes in which the rules are not clear, are not consistently applied and are subject to sudden change; fluctuations in foreign currency exchange and interest rates; competition with the other primary global independent leaf tobacco merchant and independent leaf merchants; disruption, failure or security breaches of our information technology systems and other cybersecurity risks; continued high inflation; regulations regarding environmental matters; risks related to our capital structure, including risks related to our significant debt and our ability to continue to finance our non-U.S. local operations with uncommitted short-term operating credit lines at the local level; our ability to continue to access capital markets to obtain long-term and short-term financing; potential failure of foreign banks in which our subsidiaries maintain deposits or the failure by such banks to transfer funds or honor withdrawals; the risk that, because our ability to generate cash depends on many factors beyond our control, we may be unable to generate the significant amount of cash required to service our indebtedness; our ability to refinance our current credit facilities at the same availability or at similar or reduced interest rates; failure to achieve our stated goals, which may adversely affect our liquidity; developments with respect to our liquidity needs and sources of liquidity; the volatility and disruption of global credit markets; failure by counterparties to derivative transactions to perform their obligations; increasing scrutiny and changing expectations from governments, as well as other stakeholders such as investors and customers, with respect to our environmental, social and governance policies, including sustainability policies; inherent risk of exposure to product liability claims, regulatory action and litigation if our products are alleged to have caused significant loss, injury, or death; certain shareholders have the ability to exercise controlling influence on various corporate matters; reductions in demand for consumer tobacco products; risks and uncertainties related to pandemics or other widespread health crises and any related shipping constraints, labor shortages and supply-chain impacts; legislative and regulatory initiatives that may reduce consumption of consumer tobacco products and demand for our services and increase regulatory burdens on us or our customers; government actions that significantly affect the sourcing of tobacco, including governmental actions to identify and assess crop diversification initiatives and alternatives to leaf tobacco growing in countries whose economies depend upon tobacco production; governmental investigations into our business activities, including, but not limited to, leaf tobacco industry buying and other payment practices; and impact of proposed regulations to prohibit the sale of cigarettes and certain other tobacco products in the United States other than low-nicotine versions of those products. We do not undertake to update any forward-looking statements that we may make from time to time except to the extent required by law. Non-GAAP Financial Information. This presentation contains financial measures that have not been prepared in accordance with generally accepted accounting pr inciples in the United States ("GAAP"). They include EBITDA, Adjusted EBITDA, Adjusted Free Cash Flow, Free Cash Flow Adjusted for Changes in Working Capital and Net Debt. Tables showing the reconciliati on of historical non-GAAP financial measures are included in the appendix to this presentation. The range of Adjusted EBITDA anticipated for fiscal year ending March 31, 2026 is calculated in a manner c onsistent with the presentation of Adjusted EBITDA included in the appendix. Because of the forward-looking nature of the estimated range of Adjusted EBITDA, it is impractical to present a quantitative rec onciliation of such measure to a comparable GAAP measure, and accordingly no such GAAP measure is being presented.
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4 Strong Third-Quarter Performance Adjusted EBITDA* matches last year’s Q3 record Expanded third-party processing delivers significant scale benefits Demonstrates consistent execution and positions FY26 as one of our strongest years Larger Crops Drive Q3 Working Capital and Q4 Revenue & Cash Release Larger South America and Africa crops increase Q3 working capital as expected, which supports materially higher Q4 revenue and profitability Shipments weighted to the end of the year will convert inventory into cash, releasing working capital, reducing seasonal debt and improving leverage metrics Strategic Initiatives & Sustainability Progress Centralization and automation plan to expand capabilities and lower costs in South America Refresh of sustainability strategy with new, enhanced targets for world-wide progress 4 Strong Q3 Performance Positions the Business for One of its Strongest Years on Record * Non-GAAP measure. S ee Appendix for reconciliation to comparable GAAP measure.
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Q3 FY26 Quarterly Financial Highlights - P&L 5 Revenue of $656 million, lower than Q3 FY25 of $778 million Expected result of timing shift with heavier Q4 shipment plan for Africa and South America-related inventory and lower average sales prices Gross margin up slightly to 15.2%, up from 15.0% in the prior-year quarter Driven by heavier mix of South America and sustained growth in third-party processing volumes Operating income of $51.3 million from $66.1 million last year Revenue timing impact, partly offset by SG&A of $38.3 million, $8 million lower than a year-ago Income from unconsolidated affiliates of $12.4 million, an increase of $8 million from the prior year Primarily from company’s JV in Brazil, which also benefited from larger South American crop Adjusted EBITDA* of $80.0 million, flat to record Q3 FY25 performance * Non-GAAP measure. S ee Appendix for reconciliation to comparable GAAP measure.
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Q3 FY26 Financial Highlights – Working Capital 6 Inventory increase of $207 million to $989 million, consistent with larger crops, earlier purchasing and strong fourth quarter shipments Seasonal lines rose $225 million to $834 million, aligned with inventory build Operating cycle of 184 days, up from 161 days in Q3 FY25, consistent with earlier purchasing required by larger crops 473 609 834 Q3 FY24 Q3 FY25 Q3 FY26 Seasonal Lines Seasonal Lines ($ millions) 780 782 989 Q3 FY24 Q3 FY25 Q3 FY26 Inventory Inventory ($ millions) 181 161 184 Q3 FY24 Q3 FY25 Q3 FY26 Cash Conversion Operating Cycle Operating Cycle Days
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Adjusted Free Cash Flow and Free Cash Flow Adjusted for Changes in Working Capital 7 Free Cash Flow Adjusted for Changes in Working Capital demonstrates the impact of changes in working capital on adjusted free cash flow during a larger crop year. Reconciliations of this measure to the comparable GAAP measure and to the measure previously presented as adjusted cash flow are included in the Appendix. (1) Non-GAAP measure. See Appendix for reconciliation to comparable GAAP measure. (2) Represents changes in operating assets and liabilities, net offset by collections from beneficial interests in securitized trade receivables. ($ in millions) 2025 2024 2023 2025 2024 2023 Adjusted Free Cash Flow 1 (186) (0) (95) 152 (60) 11 Changes in Working Capital 2 (181) (1) (96) 132 (64) 38 Free Cash Flow Adjusted for Changes in Working Capital 1 (5) 0 1 19 3 (27) Last Twelve Months Ended December 31, Fiscal Year Ended March 31,
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1.58 1.52 1.43 Q3 FY24 Q3 FY25 Q3 FY26 LTM Interest Coverage* FY26 Q3 Financial Highlights – Liquidity and Leverage 8 Liquidity remains strong with no outstanding borrowings on $150 million ABL facility Leverage of 6.01x and interest coverage of 1.43x expected to improve with Q4 working capital release 4.79 4.61 6.01 Q3 FY24 Q3 FY25 Q3 FY26 Net Debt to LTM Adjusted EBITDA * * Non-GAAP measure. S ee Appendix for reconciliation to comparable GAAP measure.
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Reaffirms Guidance – On Track to Deliver One of the Strongest Years in Our History 9 Reaffirms full-year fiscal 2026 guidance and remains on track to deliver one of the strongest years in Company’s history, with expected net sales of $2.4 to $2.6billion and adjusted EBITDA between $215 and $235 million. Strong visibility into fourth-quarter shipments Continued execution supports achieving full-year targets
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Pieter Sikkel President and Chief Executive Officer Dustin Styons Executive Vice President and Chief Financial Officer Questions & Answers 10
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APPENDIX
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Selected Third Quarter Income Statement Data 12 Three Months Ended December 31, Change (in millions) 2025 2024 $ % Sales and other operating revenues $ 655.8 $ 778.3 (122.5) (15.7) Cost of goods and services sold 555.9 661.9 (106.0) (16.0) Gross profit* 99.9 116.5 (16.6) (14.2) Selling, general, and administrative expenses 38.3 46.5 (8.2) (17.6) Other expense, net 8.8 3.8 5.0 131.6 Restructuring and asset impairment charges 1.5 0.1 1.4 1400.0 Operating income 51.3 66.1 (14.8) (22.4) Gain on pension settlement 0.4 — 0.4 100.0 Interest expense, net 36.6 32.9 3.7 11.2 Income tax expense 10.3 18.1 (7.8) (43.1) Income from unconsolidated affiliates, net 12.4 4.3 8.1 188.4 Net income attributable to Pyxus International, Inc. $ 16.9 $ 18.9 (2.0) (10.6) * Amounts may not equal column totals due to rounding.
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Selected YTD Q3 Income Statement Data 13 Nine Months Ended December 31, Change (in millions) 2025 2024 $ % Sales and other operating revenues $ 1,734.8 $ 1,979.5 (244.7) (12.4) Cost of goods and services sold 1,481.5 1,703.8 (222.3) (13.0) Gross profit* 253.3 275.8 (22.5) (8.2) Selling, general, and administrative expenses 118.8 126.0 (7.2) (5.7) Other expense, net 13.9 9.7 4.2 43.3 Restructuring and asset impairment charges 1.6 0.4 1.2 300.0 Operating income* 119.0 139.6 (20.6) (14.8) Gain on debt retirement — 8.2 (8.2) (100.0) Gain on pension settlement 0.4 — 0.4 100.0 Interest expense, net 104.3 101.9 2.4 2.4 Income tax expense 25.8 32.3 (6.5) (20.1) Income from unconsolidated affiliates, net 11.7 7.4 4.3 58.1 Net income attributable to noncontrolling interests 0.8 0.8 — — Net income attributable to Pyxus International, Inc.* $ 0.2 $ 20.3 (20.1) (99.0) * Amounts may not equal column totals due to rounding.
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Selected Balance Sheet Data 14 Change (in millions) December 31, 2025 December 31, 2024 $ % Assets Current assets Cash and cash equivalents $ 129.8 $ 103.3 26.5 25.7 % Restricted cash 4.7 6.4 (1.7) (26.6) % Trade receivables, net 246.8 326.6 (79.8) (24.4) % Other receivables 21.7 17.5 4.2 24.0 % Inventories, net 989.1 782.5 206.6 26.4 % Advances to tobacco suppliers, net 102.1 91.8 10.3 11.2 % Recoverable income taxes 13.0 2.7 10.3 381.5 % Prepaid expenses 38.4 34.5 3.9 11.3 % Other current assets 22.1 19.8 2.3 11.6 % Total current assets* 1,567.8 1,385.2 182.6 13.2 % Total noncurrent assets 351.3 335.0 16.3 4.9 % Total assets $ 1,919.1 $ 1,720.2 198.9 11.6 % Liabilities and Stockholders’ Equity Current liabilities Notes payable $ 833.7 $ 608.6 225.1 37.0 % Accounts payable 136.7 169.8 (33.1) (19.5) % Advances from customers 63.9 88.4 (24.5) (27.7) % Accrued expenses and other current liabilities 125.8 104.2 21.6 20.7 % Income taxes payable 15.6 20.5 (4.9) (23.9) % Operating leases payable 9.2 8.2 1.0 12.2 % Total current liabilities* 1,184.9 999.8 185.1 18.5 % Long-term debt 455.5 454.6 0.9 0.2 % Other noncurrent liabilities 111.1 98.7 12.4 12.6 % Total liabilities* 1,751.5 1,553.2 198.3 12.8 % Total stockholders’ equity 167.6 167.0 0.6 0.4 % Total liabilities and stockholders’ equity $ 1,919.1 $ 1,720.2 198.9 11.6 % * Amounts may not equal column totals due to rounding.
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Appendix – Q3 Adjusted EBITDA 15 Three Months Ended (in thousands) December 31, 2025 December 31, 2024 December 31, 2023 Net income attributable to Pyxus International, Inc. $ 16,903 $ 18,898 $ 3,835 Plus: Interest expense 37,364 34,027 34,379 Plus: Income tax expense 10,297 18,088 6,156 Plus: Depreciation and amortization expense 5,280 4,846 4,909 EBITDA (1) 69,844 75,859 49,279 Plus: (Recoveries) reserves for doubtful customer receivables (25) 561 540 Plus: Noncash equity-based compensation 272 267 — Plus: Other expense, net 8,818 3,764 2,323 Plus: Restructuring and asset impairment charges 1,504 89 85 Plus: (Gain) loss on pension settlement (3) (373) — 12,008 Plus: Other adjustments (2) (5) 2 276 Adjusted EBITDA (1) $ 80,035 $ 80,542 $ 64,511
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Appendix – Q3 Adjusted EBITDA Footnotes 16 (1) Earnings before interest, taxes, depreciation and amortization ("EBITDA"), and adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") are not measures of results of operations under generally accepted accounting principles in the United States ("U.S. GAAP") and should not be considered as an alternative to other U.S. GAAP measurements. We have presented EBITDA and Adjusted EBITDA to adjust for the items identified above because we believe that it would be helpful to the readers of our financial information to understand the impact of these items on our reported amounts. This presentation enables readers to better compare our results to similar companies that may not incur the impact of various items identified above. Management acknowledges that there are many items that impact a company's reported results or operating cash flows and these lists are not intended to present all items that may have impacted these items. EBITDA, Adjusted EBITDA, and any ratios calculated based on these measures are not necessarily comparable to similarly-titled measures used by other companies or appearing in our debt obligations or agreements. EBITDA and Adjusted EBITDA as presented may not equal column or row totals due to rounding. (2) Includes the following items: (i) the addition of amortization of basis difference related to a former Brazilian subsidiary that is now deconsolidated following the completion of a joint venture in March 2014 and (ii) the subtraction of the Adjusted EBITDA of the Company's former green leaf sourcing operation in Kenya, which is calculated on the same basis as Adjusted EBITDA presented in this table (in fiscal year 2016 the Company decided to exit green leaf sourcing in the Kenyan market as part of our restructuring program). (3) During the three months ended December 31, 2023, the Company terminated its U.K. Pension Plan. The Company recorded a noncash pension settlement charge which included the disposition of the U.K. Pension Plan assets and reclassification of unrecognized net pension losses within accumulated other comprehensive income (loss) into the Company's condensed consolidated statements of operations.
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Appendix – YTD Q3 Adjusted EBITDA 17 Nine Months Ended (in thousands) December 31, 2025 December 31, 2024 December 31, 2023 December 31, 2022 Net income (loss) attributable to Pyxus International, Inc. $ 199 $ 20,313 $ 12,734 $ (18,533) Plus: Interest expense 106,989 105,682 100,779 89,805 Plus: Income tax expense 25,829 32,248 16,360 15,810 Plus: Depreciation and amortization expense 15,647 15,038 14,228 14,678 EBITDA (1) 148,664 173,281 144,101 101,760 Plus: (Recoveries) reserves for doubtful customer receivables (291) 683 791 (129) Plus: Noncash equity-based compensation 765 3,899 — — Plus: Other expense, net 13,873 9,686 6,036 9,753 Plus: Restructuring and asset impairment charges (2) 1,625 416 1,379 5,855 Less: Gain on debt retirement — 8,178 — — Plus: Debt restructuring — — 175 713 Plus: (Gain) loss on pension settlement (3) (373) — 12,008 2,724 Plus: Other adjustments (4) (16) 17 787 (504) Adjusted EBITDA (1) $ 164,247 $ 179,804 $ 165,277 $ 120,172
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Appendix – YTD Q3 Adjusted EBITDA Footnotes 18 (1) EBITDA and Adjusted EBITDA are not measures of results of operations under U.S. GAAP and should not be considered as an alternative to other U.S. GAAP measurements. We have presented EBITDA and Adjusted EBITDA to adjust for the items identified above because we believe that it would be helpful to the readers of our financial information to understand the impact of these items on our reported amounts. This presentation enables readers to better compare our results to similar companies that may not incur the impact of various items identified above. Management acknowledges that there are many items that impact a company's reported results or operating cash flows and these lists are not intended to present all items that may have impacted these items. EBITDA, Adjusted EBITDA, and any ratios calculated based on these measures are not necessarily comparable to similarly-titled measures used by other companies or appearing in our debt obligations or agreements. EBITDA and Adjusted EBITDA as presented may not equal column or row totals due to rounding. (2) Amounts incurred during the nine months ended December 31, 2022 were primarily related to the restructuring of certain non-leaf operations. (3) During the nine months ended December 31, 2023, the Company terminated its U.K. Pension Plan. The Company recorded a noncash pension settlement charge which included the disposition of the U.K. Pension Plan assets and reclassification of unrecognized net pension losses within accumulated other comprehensive income (loss) into the Company's condensed consolidated statements of operations. During the nine months ended December 31, 2022, the Company settled benefits with vested participants in the U.S. defined benefit pension plan ("U.S. Pension Plan") that elected a lump sum payout and made a cash contribution to fully fund the U.S. Pension Plan's liabilities in preparation to purchase a group annuity contract to administer future payments to the remaining U.S. Pension Plan participants. This adjustment includes pension settlement charges incurred during the nine months ended December 31, 2022 and were classified as loss on pension settlement expense and selling, general, and administration expenses in the Company's condensed consolidated statements of operations. (4) Includes the following items: (i) the addition of amortization of basis difference related to a former Brazilian subsidiary that is now deconsolidated following the completion of a joint venture in March 2014, (ii) the subtraction of the Adjusted EBITDA of the Company's former green leaf sourcing operation in Kenya, which is calculated on the same basis as Adjusted EBITDA presented in this table (in fiscal year 2016 the Company decided to exit green leaf sourcing in the Kenyan market as part of our restructuring program), (iii) the subtraction of a one-time interest receipt related to a legal settlement in South America during the three months ended June 30, 2022, and (iv) the subtraction of the Adjusted EBITDA of the former industrial hemp operations, which is calculated on the same basis as Adjusted EBITDA presented in this table.
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Appendix – FY Adjusted EBITDA 19 Fiscal Year Ended (in thousands) March 31, 2025 March 31, 2024 March 31, 2023 Net income (loss) attributable to Pyxus International, Inc. $ 15,166 $ 2,663 $ (39,141) Plus: Interest expense 133,108 132,174 118,458 Plus: Income tax expense 25,053 27,281 34,127 Plus: Depreciation and amortization expense 20,334 19,250 19,137 EBITDA (1) 193,661 181,368 132,581 Plus: Reserves for doubtful customer receivables 103 640 426 Plus: Noncash equity-based compensation 4,110 — — Plus: Other expense, net 16,410 9,439 11,023 Plus: Restructuring and asset impairment charges (2) 2,259 4,799 6,160 Less: Gain on debt retirement 8,178 15,914 — Plus: Debt restructuring (4) — 330 5,496 Plus: Loss on pension settlement (3) — 12,008 2,724 Plus: Other adjustments (5) 45 1,247 397 Adjusted EBITDA (1) $ 208,410 $ 193,917 $ 158,807
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Appendix – FY Adjusted EBITDA Footnotes 20 (1) EBITDA and Adjusted EBITDA are not measures of results of operations under U.S. GAAP and should not be considered as an alternative to other U.S. GAAP measurements. We have presented EBITDA and Adjusted EBITDA to adjust for the items identified above because we believe that it would be helpful to the readers of our financial information to understand the impact of these items on our reported amounts. This presentation enables readers to better compare our results to similar companies that may not incur the impact of various items identified above. Management acknowledges that there are many items that impact a company's reported results or operating cash flows and these lists are not intended to present all items that may have impacted these items. EBITDA, Adjusted EBITDA, and any ratios calculated based on these measures are not necessarily comparable to similarly-titled measures used by other companies or appearing in our debt obligations or agreements. EBITDA and Adjusted EBITDA as presented may not equal column or row totals due to rounding. (2) Amounts incurred during the fiscal year ended March 31, 2025 included employee separation charges primarily related to the continued restructuring of certain leaf operations. Amounts incurred during the fiscal year ended March 31, 2024 included employee separation charges primarily related to changes in the corporate organizational structure and the continued restructuring of certain leaf operations and asset impairment charges primarily related to continued restructuring of certain non-leaf agriculture operations. Amounts incurred during the fiscal year ended March 31, 2023 included employee separation and asset impairment charges primarily related to the restructuring of certain non-leaf operations and related inventory write-offs classified within cost of goods and services sold in the Company's consolidated statements of operations. (3) During the fiscal year ended March 31, 2024, the Company terminated its U.K. Pension Plan. The Company recorded a noncash pension settlement charge which included the disposition of the U.K. Pension Plan assets and reclassification of unrecognized net pension losses within accumulated other comprehensive income (loss) into the Company's condensed consolidated statements of operations. During the fiscal year ended March 31, 2023, the Company settled benefits with vested participants in the U.S. Pension Plan that elected a lump sum payout and made a cash contribution to fully fund the U.S. Pension Plan's liabilities in preparation to purchase a group annuity contract to administer future payments to the remaining U.S. Pension Plan participants. This adjustment includes pension settlement charges incurred during the fiscal year ended March 31, 2023 and were classified as loss on pension settlement expense and selling, general, and administration expenses in the Company's consolidated statements of operations. (4) Amounts incurred during the fiscal year ended March 31, 2023 included legal and professional fees incurred in connection with debt exchange transactions completed by the Company in February 2023 and with the amendment and extension of the Company's former delayed-draw term loan. (5) Includes the following items: (i) the addition of amortization of basis difference related to a former Brazilian subsidiary that is now deconsolidated following the completion of a joint venture in March 2014, (ii) the subtraction of the Adjusted EBITDA of the Company's former green leaf sourcing operation in Kenya, which is calculated on the same basis as Adjusted EBITDA presented in this table (in fiscal year 2016 the Company decided to exit green leaf sourcing in the Kenyan market as part of our restructuring program), and (iii) the subtraction of the Adjusted EBITDA of the former industrial hemp operations, which is calculated on the same basis as Adjusted EBITDA presented in this table.
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Net Debt to Adjusted EBITDA & Interest Coverage (1) Adjusted EBITDA and Net Debt are not measures of results of operations or indebtedness under U.S. GAAP and should not be considered as an alternative to other U.S. GAAP measurements. We have presented Adjusted EBITDA, and Net Debt to adjust for the items identified above because we believe that it would be helpful to the readers of our financial information to understand the impact of these items on our reported amounts. This presentation enables readers to better compare our results to similar companies that may not incur the impact of various items identified above. Management acknowledges that there are many items that impact a company's reported results or operating cash flows and these lists are not intended to present all items that may have impacted these items. Adjusted EBITDA, Net Debt, and any ratios calculated based on these measures are not necessarily comparable to similarly-titled measures used by other companies or appearing in our debt obligations or agreements. (2) Items for the twelve months ended December 31, 2025 are derived by adding the items for the nine months ended December 31, 2025 and the fiscal year ended March 31, 2025 and subtracting the items for the nine months ended December 31, 2024. Items for the twelve months ended December 31, 2024 are derived by adding the items for the nine months ended December 31, 2024 and the fiscal year ended March 31, 2024 and subtracting the items for the nine months ended December 31, 2023. Items for the twelve months ended December 31, 2023 are derived by adding the items for the nine months ended December 31, 2023 and the fiscal year ended March 31, 2023 and subtracting the items for the nine months ended December 31, 2022. 21 Last Twelve Months (2) (in thousands) December 31, 2025 December 31, 2024 December 31, 2023 Total debt $ 1,289,262 $ 1,063,340 $ 1,067,300 Less: Cash and cash equivalents 129,840 103,342 90,245 Net Debt (1) $ 1,159,422 $ 959,998 $ 977,055 Net Debt /Adjusted EBITDA (1) 6.01x 4.61x 4.79x Adjusted EBITDA (1) $ 192,853 $ 208,444 $ 203,912 Interest expense 134,415 137,077 129,432 Interest coverage 1.43x 1.52x 1.58x
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Appendix – Adjusted Free Cash Flow and Free Cash Flow Adjusted for Changes in Working Capital - YTD Q3 (1) Represents cash receipts from the beneficial interest on sold receivables under the Company’s accounts receivable securitization programs and are classified as investing activities within the condensed consolidated statements of cash flows. (2) Adjusted Free Cash Flow and Free Cash Flow Adjusted for Changes in Working Capital are not measures of cash flows from operations under U.S. GAAP and should not be considered as an alternative to other U.S. GAAP measurements. We have presented Adjusted Free Cash Flow and Free Cash Flow Adjusted for Changes in Working Capital to adjust for the items identified above because we believe that it would be helpful to the readers of our financial information to understand the impact of these items on our reported amounts. This presentation enables readers to better compare our results to similar companies that may not incur the impact of various items identified above. Management acknowledges that there are many items that impact a company's reported results or operating cash flows and these lists are not intended to present all items that may have impacted these items. Adjusted Free Cash Flow and Free Cash Flow Adjusted for Changes in Working Capital are not necessarily comparable to similarly-titled measures used by other companies or appearing in our debt obligations or agreements. 22 Nine Months Ended (in thousands) December 31, 2025 December 31, 2024 December 31, 2023 December 31, 2022 Net cash used in operating activities $ (518,572) $ (171,688) $ (216,834) $ (110,599) Capital expenditures (15,780) (15,119) (14,351) (9,931) Collections from beneficial interests in securitized trade receivables (1) 152,484 $ 142,824 127,298 122,638 Adjusted Free Cash Flow (2) $ (381,868) $ (43,983) $ (103,887) $ 2,108 Changes in operating assets and liabilities, net 536,128 213,060 260,436 122,310 Collections from beneficial interests in securitized trade receivables (1) (152,484) (142,824) (127,298) (122,638) Free Cash Flow Adjusted for Changes in Working Capital (2) $ 1,776 $ 26,253 $ 29,251 $ 1,780
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Appendix – Adjusted Free Cash Flow and Free Cash Flow Adjusted for Changes in Working Capital - LTM Q3 (1) Represents cash receipts from the beneficial interest on sold receivables under the Company’s accounts receivable securitization programs and are classified as investing activities within the condensed consolidated statements of cash flows. (2) Adjusted Free Cash Flow and Free Cash Flow Adjusted for Changes in Working Capital are not measures of cash flows from operations under U.S. GAAP and should not be considered as an alternative to other U.S. GAAP measurements. We have presented Adjusted Free Cash Flow and Free Cash Flow Adjusted for Changes in Working Capital to adjust for the items identified above because we believe that it would be helpful to the readers of our financial information to understand the impact of these items on our reported amounts. This presentation enables readers to better compare our results to similar companies that may not incur the impact of various items identified above. Management acknowledges that there are many items that impact a company's reported results or operating cash flows and these lists are not intended to present all items that may have impacted these items. Adjusted Free Cash Flow and Free Cash Flow Adjusted for Changes in Working Capital are not necessarily comparable to similarly-titled measures used by other companies or appearing in our debt obligations or agreements. (3) Items for the twelve months ended December 31, 2025 are derived by adding the items for the nine months ended December 31, 2025 and the fiscal year ended March 31, 2025 and subtracting the items for the nine months ended December 31, 2024. Items for the twelve months ended December 31, 2024 are derived by adding the items for the nine months ended December 31, 2024 and the fiscal year ended March 31, 2024 and subtracting the items for the nine months ended December 31, 2023. Items for the twelve months ended December 31, 2023 are derived by adding the items for the nine months ended December 31, 2023 and the fiscal year ended March 31, 2023 and subtracting the items for the nine months ended December 31, 2022. 23 Last Twelve Months (3) (in thousands) December 31, 2025 December 31, 2024 December 31, 2023 Net cash used in operating activities $ (360,270) $ (169,824) $ (244,057) Capital expenditures (23,689) (21,811) (20,727) Collections from beneficial interests in securitized trade receivables (1) 197,972 $ 191,437 169,922 Adjusted Free Cash Flow (2) $ (185,987) $ (198) $ (94,862) Changes in operating assets and liabilities, net 378,916 192,089 265,544 Collections from beneficial interests in securitized trade receivables (1) (197,972) (191,437) (169,922) Free Cash Flow Adjusted for Changes in Working Capital (2) $ (5,043) $ 454 $ 760
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Appendix – Adjusted Free Cash Flow and Free Cash Flow Adjusted for Changes in Working Capital - FY (1) Represents cash receipts from the beneficial interest on sold receivables under the Company’s accounts receivable securitization programs and are classified as investing activities within the condensed consolidated statements of cash flows. (2) Adjusted Free Cash Flow and Free Cash Flow Adjusted for Changes in Working Capital are not measures of cash flows from operations under U.S. GAAP and should not be considered as an alternative to other U.S. GAAP measurements. We have presented Adjusted Free Cash Flow and Free Cash Flow Adjusted for Changes in Working Capital to adjust for the items identified above because we believe that it would be helpful to the readers of our financial information to understand the impact of these items on our reported amounts. This presentation enables readers to better compare our results to similar companies that may not incur the impact of various items identified above. Management acknowledges that there are many items that impact a company's reported results or operating cash flows and these lists are not intended to present all items that may have impacted these items. Adjusted Free Cash Flow and Free Cash Flow Adjusted for Changes in Working Capital are not necessarily comparable to similarly-titled measures used by other companies or appearing in our debt obligations or agreements. 24 Fiscal Year Ended (in thousands) March 31, 2025 March 31, 2024 March 31, 2023 Net cash used in operating activities $ (13,386) $ (214,970) $ (137,822) Capital expenditures (23,028) (21,043) (16,307) Collections from beneficial interests in securitized trade receivables (1) 188,312 $ 175,911 165,262 Adjusted Free Cash Flow (2) $ 151,898 $ (60,102) $ 11,133 Changes in operating assets and liabilities, net 55,848 239,465 127,418 Collections from beneficial interests in securitized trade receivables (1) (188,312) (175,911) (165,262) Free Cash Flow Adjusted for Changes in Working Capital (2) $ 19,434 $ 3,452 $ (26,711)