DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Sep. 30, 2025

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 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 Consolidated Balance Sheets. The assets and liabilities recorded as of September 30, 2025 and September 30, 2024 were not material.

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 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 September 30, 2025, the Company had entered into natural gas derivative instruments to hedge a portion of its natural gas purchase requirements through December 31, 2026. As of September 30, 2025 and September 30, 2024, the Company had agreements in place to hedge forecasted natural gas purchases of 2.6 million and 2.3 million MMBtus, respectively.

On March 1, 2023, the Company de-designated its natural gas cash flow hedges related to its Ogden, Utah production facility as the Company did not believe these hedges were probable of being highly effective in the second fiscal quarter of 2023. Beginning March 1, 2023, the change in the derivative was recorded in other expense, net in the Consolidated Statements of

Operations. The Company recorded expense related to the hedges that were de-designated of $0.0 million, $0.8 million, and $2.9 million in other expense, net, during the fiscal years ended September 30, 2025, September 30, 2024, and September 30, 2023, respectively. Following the de-designation, these natural gas economic hedging instruments were recorded at fair value through earnings until settled. Substantially all other natural gas derivative instruments held by the Company as of September 30, 2025 and September 30, 2024 qualified and were designated as cash flow hedges. The Company recorded a net expense related to the natural gas cash flow hedges of $2.5 million, $4.7 million, and $4.7 million in Product costs, during the fiscal years ended September 30, 2025, September 30, 2024, and September 30, 2023, respectively. As of September 30, 2025, the Company expects to reclassify from AOCL to earnings during the next twelve months $0.9 million of net losses on derivative instruments related to its natural gas hedges. Refer to Note 15. Fair Value Measurements for the estimated fair value of the Company’s natural gas derivative instruments as of September 30, 2025 and September 30, 2024.

The following tables present the fair value of the Company’s derivatives (in millions):

	Asset Derivatives			Liability Derivatives
	Consolidated Balance Sheet Location	September 30, 2025		Consolidated Balance Sheet Location	September 30, 2025
Derivatives designated as hedging instruments:
Commodity contracts	Other current assets	$	6.2	Accrued expenses and other current liabilities	$	7.1
Commodity contracts	Other assets	1.7		Other noncurrent liabilities	1.6
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 Consolidated Balance Sheets $7.8 million of its commodity contracts that are in receivable positions against its contracts in payable positions.

	Asset Derivatives			Liability Derivatives
	Consolidated Balance Sheet Location	September 30, 2024		Consolidated Balance Sheet Location	September 30, 2024
Derivatives designated as hedging instruments:
Commodity contracts	Other current assets	$	0.5	Accrued expenses and other current liabilities	$	1.7
Commodity contracts	Other assets	0.1		Other noncurrent liabilities	0.2
Total derivatives(a)		$	0.6		$	1.9

(a)The Company has master netting agreements with its commodity hedge counterparties and accordingly has netted in its Consolidated Balance Sheets $0.6 million of its commodity contracts that are in receivable positions against its contracts in payable positions.

The following tables present activity related to accumulated other comprehensive (loss) income before taxes (in millions):

		Fiscal Year Ended September 30, 2025
Derivatives in Cash Flow Hedging Relationships	Location of Change Reclassified from AOCL into Income (Effective Portion)	Net Loss Recognized in AOCL on Derivatives (Effective Portion)		Net Loss Reclassified from AOCL into Income (Effective Portion)
Commodity contracts	Product cost	$	(2.0)	$	2.5
Total		$	(2.0)	$	2.5

		Fiscal Year Ended September 30, 2024
Derivatives in Cash Flow Hedging Relationships	Location of Change Reclassified from AOCL into Income (Effective Portion)	Net Loss Recognized in AOCL on Derivatives (Effective Portion)		Net Loss Reclassified from AOCL into Income (Effective Portion)
Commodity contracts	Product cost	$	(4.6)	$	4.7
Total		$	(4.6)	$	4.7