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DERIVATIVE FINANCIAL INSTRUMENTS
 9 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS
 
The Company is subject to various types of market risks, including interest rate risk, foreign currency exchange rate transaction and translation risk and commodity pricing risk. Management may take actions to mitigate the exposure to these types of risks, including entering into forward purchase contracts and other financial instruments. The Company manages a portion of its commodity pricing risks and foreign currency exchange rate risks by using derivative instruments. From time to time, the Company may enter into foreign exchange contracts to mitigate foreign exchange risk. The Company does not seek to engage in trading activities or take speculative positions with any financial instrument arrangement. The Company enters into natural gas derivative instruments and foreign currency derivative instruments with counterparties it views as creditworthy. However, the Company does attempt to mitigate its counterparty credit risk exposures by, among other things, entering into master netting agreements with some of these counterparties. The Company records derivative financial instruments as either assets or liabilities at fair value in its Condensed Consolidated Balance Sheets and the balances were not material as of June 30, 2026 and September 30, 2025.

Derivatives qualify for treatment as hedges when there is a high correlation between the change in fair value of the derivative instrument and the related change in value of the underlying hedged item. Depending on the exposure being hedged, the Company must designate the hedging instrument as a fair value hedge, a cash flow hedge or a net investment in foreign operations hedge. For the qualifying derivative instruments that have been designated as cash flow hedges, the effective portion of the change in fair value is recorded through earnings when the underlying transaction being hedged affects earnings, allowing a derivative’s gains and losses to offset related results from the hedged item in the Condensed Consolidated Statements of Operations. Any ineffectiveness related to these instruments accounted for as hedges was not material for any of the periods presented. For derivative instruments that have not been designated as hedges, the entire change in fair value is recorded through earnings in the period of change.

Natural Gas Derivative Instruments

Natural gas is consumed at several of the Company’s production facilities, and changes in natural gas prices impact the Company’s operating margin. The Company seeks to reduce the earnings and cash flow impacts of changes in market prices of natural gas by fixing the purchase price of up to 90% of its forecasted natural gas usage. It is the Company’s policy to consider hedging portions of its natural gas usage up to 36 months in advance of the forecasted purchase. As of June 30, 2026, the Company had entered into natural gas derivative instruments to hedge a portion of its natural gas purchase requirements through December 31, 2027. As of June 30, 2026 and September 30, 2025, the Company had agreements in place to hedge forecasted natural gas purchases of 1.9 million and 2.6 million MMBtus, respectively. All natural gas derivative instruments
held by the Company as of June 30, 2026 and September 30, 2025 qualified and were designated as cash flow hedges. The Company recorded a net expense related to the natural gas cash flow hedges of $1.0 million and $0.8 million, in Product costs, during the three months ended June 30, 2026 and June 30, 2025, respectively, and $1.5 million and $1.8 million, during the nine months ended June 30, 2026 and June 30, 2025, respectively. As of June 30, 2026, the Company expects to reclassify $1.1 million of net losses on natural gas derivative instruments from AOCL to earnings during the next twelve months. Refer to Note 12. Fair Value Measurements for the estimated fair value of the Company’s natural gas derivative instruments as of June 30, 2026 and Note 10. Stockholders' Equity and Equity Instruments for the activity related to AOCL.

The following tables present the fair value of the Company’s derivatives (in millions):
Asset DerivativesLiability Derivatives
Consolidated Balance Sheet LocationJune 30, 2026Consolidated Balance Sheet LocationJune 30, 2026
Derivatives designated as hedging instruments:
Commodity contractsOther current assets$3.7 Accrued expenses and other current liabilities$4.8 
Commodity contractsOther assets1.0 Other noncurrent liabilities1.1 
Total derivatives(a)
$4.7 $5.9 
(a)The Company has master netting agreements with its commodity hedge counterparties and accordingly has netted in its Condensed Consolidated Balance Sheets $3.7 million of its commodity contracts that are in current receivable positions against its contracts in current payable positions and $1.0 million in long-term other asset positions against its contracts in other noncurrent liabilities positions.

Asset DerivativesLiability Derivatives
Consolidated Balance Sheet LocationSeptember 30, 2025Consolidated Balance Sheet LocationSeptember 30, 2025
Derivatives designated as hedging instruments:
Commodity contractsOther current assets$6.2 Accrued expenses and other current liabilities$7.1 
Commodity contractsOther assets1.7 Other noncurrent liabilities1.6 
Total derivatives(a)
$7.9 $8.7 
(a)The Company has master netting agreements with its commodity hedge counterparties and accordingly has netted in its Condensed Consolidated Balance Sheets $7.8 million of its commodity contracts that are in receivable positions against its contracts in payable positions.