The board of directors granted restricted stock units and performance stock units (collectively, the stock units) to certain employee participants in 2026. Most grants of restricted stock units vest in three or four years. Performance stock units vest based upon either a performance condition or a market condition. For units granted in 2025 and prior, performance stock units granted with a performance condition have a cumulative three-year performance objective based on adjusted EBITDA (see Note 7 – Segment Information). For units granted in 2026, performance stock units granted with a performance condition have a cumulative adjusted earnings per share objective and a cumulative free cash flow objective, each weighted at 50 percent, with adjusted EBITDA margin used as a performance modifier (i.e. plus or minus 25 percent of actual earned performance). For performance stock units granted with a market condition, the applicable objective is based on our total shareholder return relative to the Standard & Poor’s SmallCap 600 Materials Index and has multi-year performance objectives. Both types of performance stock units have a three-year period for vesting, if the applicable performance objectives are achieved.

The number of performance stock units granted represents the target award and participants have the ability to earn between zero and 200 percent of the target award based upon actual performance for units granted in 2025 and prior, and between zero and 250 percent of the target award based upon actual performance for units granted in 2026. If minimum performance criteria are not achieved, no performance stock units will vest. For the awards granted in 2026, target shares for units with a market condition totaled 129,843 and target shares for units with a performance condition totaled 142,383.

We calculated the fair value of the performance stock unit awards with a market condition on the date of the grant using assumptions listed below. These awards incorporate a fair value cap such that the number of awards that vest will be reduced if our stock price exceeds the cap at the end of the performance measurement period:


	January 2026 Grant			May 2026 Grant
Grant date price per share of performance award	$	26.93		$	41.54
Expected volatility	37.74		%	39.03		%
Risk-free interest rate	3.53		%	4.06		%
Look-back period in years	3.00			3.00

Grant date fair value per share	$	27.97		$	68.25


	Restricted Stock Units	Performance Stock Units	Total Stock Units	Weighted Average Grant Date Fair Value per Unit
Non-vested at December 31, 2025	530,237	734,231	1,264,468	$	35.22
Granted	256,608	272,652	529,260	$	28.77
Credited from dividends	379	643	1,022	$	28.28
Performance share adjustment	0	28,505	28,505	$	28.93
Vested	(250,920)	(329,924)	(580,844)	$	33.24
Forfeited	(24,882)	(17,187)	(42,069)	$	36.14
Non-vested at June 30, 2026	511,422	688,920	1,200,342	$	33.17


	Options	Weighted Average Exercise Price per Option		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at December 31, 2025	507,130	$	28.62
Exercised	(77,409)	$	20.25
Expired	(6,664)	$	32.19
Outstanding at June 30, 2026	423,057	$	30.10	3.37	$	6.3
Exercisable at June 30, 2026	423,057	$	30.10	3.37	$	6.3


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
(Dollars in millions)
Selling, general and administrative expenses	$	2.9	$	1.7	$	6.8	$	8.3
Less related income tax benefit	0.6		0.6		1.7		2.6
Decrease in net income	$	2.3	$	1.1	$	5.1	$	5.7