NPO

• Overall Company Performance

• NPRO reported strong Q2 2026 results: total sales of $338.8 million, up 17.6% year-over-year; adjusted EBITDA increased 22%+ to $86.9 million (25.6% margin, up 90 bps YoY); adjusted diluted EPS increased 23.2% to $2.50.
• The company generated over $60 million in free cash flow year-to-date, repaid $80 million in revolving debt, resulting in a net leverage ratio of 1.6x trailing 12-month adjusted EBITDA, with a strong balance sheet and $500 million in net debt as of June 30, 2026.
• The core NPRO 3.0 (ENFRO 3.0) strategy prioritizes both individual colleague growth (half of the overall strategy) and long-term business growth, targeting mid-to-high single-digit annual organic top-line growth company-wide through 2030, with 30%+ adjusted EBITDA margins (±250 bps) across both segments.

• Strategic & Integration Updates

• Integration of the Q4 2025 acquisitions of Alpha Measurement Solutions and Overlook Industries is proceeding very well. Alpha adds process/compositional analysis capabilities, while Overlook's fluid path technology for liquid dose biologics complements NPRO's existing single-use biopharmaceutical capabilities.
• NPRO maintains disciplined capital allocation, prioritizing organic growth investments and capability-expanding strategic acquisitions that meet strict financial/strategic criteria, while returning capital to shareholders via dividends and share repurchases.

• Segment Operational Highlights

• In Sealing Technologies: the segment has a strong specified aftermarket position that provides steady resources to reinvest in growth, targeting mid-single-digit long-term organic growth, complemented by acquisitions. Commercial vehicle markets remain soft but show early signs of stabilization, and the business is well-positioned for an eventual recovery in trailer demand.
• In AST: Demand is accelerating across all regions for precision cleaning solutions for advanced semiconductor production, driven by AI, advanced computing, and communications infrastructure growth, with customer visibility extending through 2027. NPRO is pulling forward capacity investments to meet demand, and ongoing product qualification and expansion positions the segment for continued growth.

• Management raised full-year 2026 guidance across all metrics: total sales growth is now guided to 14% to 16%, up from the prior 10% to 14% range; adjusted EBITDA is guided to $330 million to $340 million, up from $315 million to $330 million; adjusted diluted EPS is guided to $9.30 to $9.80, up from $8.80 to $9.50. The majority of the guidance increase comes from AST, with a smaller improvement in Sealing Technologies performance. • Full-year 2026 capital expenditure guidance is raised to $60 million to $65 million, up from the prior expectation of ~$50 million, with incremental investments focused on expanding AST capacity to meet customer demand. • For the second half of 2026: Sealing Technologies organic growth is expected to hit high single-digits (excluding Alpha/Overlook contributions, which are projected to add $60 million to $65 million in full-year 2026 revenue), with segment margins expected to remain at the high end of the 30% ± 250 bps long-term target range. No significant commercial vehicle market recovery is built into the updated guidance. • For the second half of 2026: AST is expected to deliver 20% year-over-year revenue growth, with both segment revenue growth and adjusted EBITDA margin approaching 25% by the end of 2026, supported by strong order and backlog growth and extended visibility through 2027.

1. Sealing Technologies: Q2 2026 sales increased 15.3% year-over-year to $216.2 million, accounting for 63.8% of total company revenue. Organic growth was 5% year-over-year. Adjusted segment EBITDA increased 13.3% year-over-year, with an adjusted EBITDA margin of 33.2%, staying above 30% for the 10th consecutive quarter. Aftermarket sales accounted for 60% of the segment's revenue. Growth was driven by contributions from the Alpha Measurement Solutions and Overlook Industries acquisitions, strong aerospace performance, and double-digit organic growth in U.S. domestic general industrial markets; weakness was seen in commercial vehicle markets and smaller European general industrial/food and biopharma end markets.

2. Advanced Surface Technology (AST): Q2 2026 sales increased 21.8% year-over-year, accounting for the remaining 36.2% of total company revenue. Orders improved sequentially, with materially higher book-to-bill ratios for capital equipment and coating solutions. Adjusted segment EBITDA increased 48.5% year-over-year, with adjusted EBITDA margin expanding 430 basis points to 23.9%, driven by operating leverage from higher sales volumes and normalization of prior-year foreign exchange headwinds.

• Soft demand in the commercial vehicle (primarily trailer) market continues to pressure near-term growth in the Sealing Technologies segment, with no material recovery assumed in 2026 guidance. • Weakness in smaller European end markets (general industrial and food/biopharma) is a drag on Sealing Technologies performance in the region. • NPRO has a legacy environmental liability related to 1950s-era uranium mines in Arizona; the company increased its reserve by $16 million in Q2 2026 to cover expected remediation work over a 10-year period, though annual cash outflows are not expected to be material, with the first major outflow not occurring for at least three years. • Forward-looking guidance depends on sustained growth in semiconductor capital spending for advanced AI and computing infrastructure, which is subject to industry cyclicality.

Q: Is the full-year guidance increase entirely from AST, what is driving accelerating Sealing Technologies growth in H2, and what is behind the doubled-digit domestic general industrial growth? / A: The majority of the guidance increase is from AST, but Sealing Technologies organic growth is also improving, now tracking to the previously guided high single-digit H2 organic growth rate. The improvement comes from stronger orders in aerospace, general industrial, and compositional analysis end markets. Double-digit domestic general industrial growth is driven by core chemical/process industry demand, plus infrastructure build out for data centers and strong demand for AMI's compositional analysis products for natural gas applications.

Q: What portions of AST's 430 basis point year-over-year margin improvement are structural versus transient, and can you address the environmental reserve increase this quarter? / A: ~$2 million of the margin improvement is from the elimination of 2025 foreign exchange headwinds on Taiwanese working capital, which is a transient factor; all remaining improvement comes from structural operating leverage driven by higher sales and production volumes as NPRO builds inventory to meet strong 2026H2/2027 demand. The $16 million reserve increase covers legacy uranium mine remediation in Arizona; the reserve is set at the midpoint of expected costs, with remediation stretching over 10 years and no material annual cash outflows, with the first major outlay not coming for at least three years.

Q: How has the compositional analysis business performed post-acquisition, and what is the outlook for growth and M&A in this space? / A: AMI's natural gas demand growth is meeting or exceeding the original acquisition thesis, and NPRO sees significant opportunity to expand the addressable market by adapting the existing sensor technology (which measures moisture, oxygen, and H2S) for new applications including biopharmaceuticals, and expanding geographically to Europe. The addition of Alpha further accelerates growth, and NPRO remains actively searching for complementary acquisition targets in this space.

Q: Where is AST's current strength across product lines, and what is the outlook for the soft commercial vehicle market? / A: AST's growth is broad-based, with very strong growth across precision cleaning and precision machining, and solid growth in optical coatings; almost all growth is driven by leading-edge semiconductor infrastructure build out for AI and advanced computing. Commercial vehicle exposure is ~70% trailer, and the market is at the bottom and showing early signs of improvement, with double-digit growth projected for 2027; NPRO has added capacity during the downturn to gain share and support both OEM and aftermarket demand through the coming recovery.