“The following table summarizes the components impacting Interest expense, net (in millions): Three Months Ended March 31, 2026 2025 Interest expense on third-party borrowings (1) $ 146 $ 109 Interest expense on related party promissory notes (2) 23 20 Capitalized interest (2) (2) $ 167 $ 127 (1) The increase in interest expense for the three-month 2026 period compared to the same period in 2025 was primarily driven by higher weighted-average debt outstanding in the 2026 period from (i) the issuance of an aggregate of $3.0 billion of senior notes during 2025 and (ii) higher commercial paper and term loan borrowings in the 2026 period, primarily related to the funding of the Cactus III acquisition in November 2025, partially offset by (iii) the repayment of $1.0 billion of senior notes in October 2025.”
“In Asia, softer demand—across Paper Machine Clothing & Engineered Fabrics—contributed to regional pressure, while EF also declined due to strategic divestment and planned plant consolidation in Europe.”
“In addition, tax expense was impacted by our continued progression of certain planning and restructuring activities within our organizational structure in connection with the pending Canadian NGL Business divestiture.”