# EDGAR Filing Document

**Accession Number:** 0000883902
**File Stem:** 0000883902-25-000036
**Filing Date:** 2025-11
**Character Count:** 227147
**Document Hash:** b2a141930c7825cf25322ecdbfb7e3cb
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000883902-25-000036.hdr.sgml**: 20251107

**ACCESSION NUMBER**: 0000883902-25-000036

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 86

**CONFORMED PERIOD OF REPORT**: 20250927

**FILED AS OF DATE**: 20251107

**DATE AS OF CHANGE**: 20251107

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Cornerstone Building Brands, Inc.
- **CENTRAL INDEX KEY:** 0000883902
- **STANDARD INDUSTRIAL CLASSIFICATION:** PREFABRICATED METAL BUILDINGS & COMPONENTS [3448]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 760127701
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-14315
- **FILM NUMBER:** 251460579

**BUSINESS ADDRESS:**
- **STREET 1:** 5020 WESTON PARKWAY
- **STREET 2:** SUITE 400
- **CITY:** CARY
- **STATE:** NC
- **ZIP:** 27513
- **BUSINESS PHONE:** (888) 975-9436

**MAIL ADDRESS:**
- **STREET 1:** 5020 WESTON PARKWAY
- **STREET 2:** SUITE 400
- **CITY:** CARY
- **STATE:** NC
- **ZIP:** 27513

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NCI BUILDING SYSTEMS INC
- **DATE OF NAME CHANGE:** 19930328

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NATIONAL COMPONENTS INCORPORATED
- **DATE OF NAME CHANGE:** 19600201

?xml version='1.0' encoding='ASCII'? cnr-20250927

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

---

| | |
|:---|:---|
| **(Mark One)** | |
| ☒ | **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |

---

**For the quarterly period ended September 27, 2025**

**or**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to**

**Commission file number: 1-14315**

![cnrlogo01.jpg](cnr-20250927_g1.jpg)

 **Cornerstone Building Brands, Inc.**

**(Exact name of registrant as specified in its charter)**

---

| | |
|:---|:---|
| **Delaware** | **76-0127701** |
| **(State or other jurisdiction of<br>incorporation or organization)** | **(I.R.S. Employer<br>Identification No.)** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **5020 Weston Parkway** | **Suite 400** | **Cary** | **NC** | **27513** |
| **(Address of principal executive offices)** | **(Address of principal executive offices)** | **(Address of principal executive offices)** | **(Address of principal executive offices)** | **(Zip Code)** |

---

**(866) 419-0042**

**(Registrant's telephone number, including area code)**

Securities registered pursuant to Section 12(b) of the Exchange Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ◻ No 🗷

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). 🗷 Yes ◻ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ◻ | Accelerated filer | ☐ |
| Non-accelerated filer | 🗷 (Do not check if a smaller reporting company) | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes 🗷 No

**APPLICABLE ONLY TO CORPORATE ISSUERS**

There are no longer publicly traded shares of common stock of Cornerstone Building Brands, Inc.

------

<u>[**Table of Contents**](#i32b10ec0f0874682a9bdcae320fff6bf_7)</u><br>

**TABLE OF CONTENTS** 

---

| | | |
|:---|:---|:---|
| | **<u>[Part I —](#i32b10ec0f0874682a9bdcae320fff6bf_10)[Unaudited](#i32b10ec0f0874682a9bdcae320fff6bf_10)[Financial Information](#i32b10ec0f0874682a9bdcae320fff6bf_10)</u>** | |
| <u>[Item 1.](#i32b10ec0f0874682a9bdcae320fff6bf_13)</u> | <u>Condensed Consolidated Financial Statements</u> | <u>[1](#i32b10ec0f0874682a9bdcae320fff6bf_13)</u> |
| | &nbsp;&nbsp;<u>[Condensed Consolidated Statements of Loss](#i32b10ec0f0874682a9bdcae320fff6bf_19)</u> | <u>[1](#i32b10ec0f0874682a9bdcae320fff6bf_19)</u> |
| | &nbsp;&nbsp;<u>[Condensed Consolidated Statements of Comprehensive Loss](#i32b10ec0f0874682a9bdcae320fff6bf_22)</u> | <u>[2](#i32b10ec0f0874682a9bdcae320fff6bf_22)</u> |
| | &nbsp;&nbsp;<u>[Condensed Consolidated Balance Sheets](#i32b10ec0f0874682a9bdcae320fff6bf_25)</u> | <u>[3](#i32b10ec0f0874682a9bdcae320fff6bf_25)</u> |
| | &nbsp;&nbsp;<u>[Condensed Consolidated Statements of Equity (Deficit)](#i32b10ec0f0874682a9bdcae320fff6bf_28)</u> | <u>[4](#i32b10ec0f0874682a9bdcae320fff6bf_28)</u> |
| | &nbsp;&nbsp;<u>[Condensed Consolidated Statements of Cash Flows](#i32b10ec0f0874682a9bdcae320fff6bf_31)</u> | <u>[6](#i32b10ec0f0874682a9bdcae320fff6bf_31)</u> |
| | &nbsp;&nbsp;<u>[Notes to Condensed Consolidated Financial Statements](#i32b10ec0f0874682a9bdcae320fff6bf_34)</u> | <u>[7](#i32b10ec0f0874682a9bdcae320fff6bf_34)</u> |
| <u>[Item 2.](#i32b10ec0f0874682a9bdcae320fff6bf_100)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i32b10ec0f0874682a9bdcae320fff6bf_100)</u> | <u>[28](#i32b10ec0f0874682a9bdcae320fff6bf_100)</u> |
| <u>[Item 3.](#i32b10ec0f0874682a9bdcae320fff6bf_130)</u> | <u>[Quantitative and Qualitative Disclosures About Market Risk](#i32b10ec0f0874682a9bdcae320fff6bf_130)</u> | <u>[37](#i32b10ec0f0874682a9bdcae320fff6bf_130)</u> |
| <u>[Item 4.](#i32b10ec0f0874682a9bdcae320fff6bf_133)</u> | <u>[Controls and Procedures](#i32b10ec0f0874682a9bdcae320fff6bf_133)</u> | <u>[37](#i32b10ec0f0874682a9bdcae320fff6bf_133)</u> |
| | **<u>[Part II — Other Information](#i32b10ec0f0874682a9bdcae320fff6bf_136)</u>** | |
| <u>[Item 1.](#i32b10ec0f0874682a9bdcae320fff6bf_139)</u> | <u>[Legal Proceedings](#i32b10ec0f0874682a9bdcae320fff6bf_139)</u> | <u>[39](#i32b10ec0f0874682a9bdcae320fff6bf_139)</u> |
| <u>[Item 1A.](#i32b10ec0f0874682a9bdcae320fff6bf_142)</u> | <u>[Risk Factors](#i32b10ec0f0874682a9bdcae320fff6bf_142)</u> | <u>[39](#i32b10ec0f0874682a9bdcae320fff6bf_142)</u> |
| <u>[Item 6.](#i32b10ec0f0874682a9bdcae320fff6bf_148)</u> | <u>[Exhibits](#i32b10ec0f0874682a9bdcae320fff6bf_148)</u> | <u>[40](#i32b10ec0f0874682a9bdcae320fff6bf_148)</u> |

---

i

------

<u>[**Table of Contents**](#i32b10ec0f0874682a9bdcae320fff6bf_7)</u><br>

**PART I — UNAUDITED FINANCIAL INFORMATION** 

**Item 1. Condensed Consolidated Financial Statements.** 

**CORNERSTONE BUILDING BRANDS, INC.** 

**CONDENSED CONSOLIDATED STATEMENTS OF LOSS**

**(In thousands)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 27, 2025** | **September 28, 2024** | **September 27, 2025** | **September 28, 2024** |
| Net sales | $1442788 | $1431356 | $4046027 | $3941345 |
| Cost of sales | 1168482 | 1154794 | 3222871 | 3114096 |
| &nbsp;&nbsp;&nbsp;Gross profit | 274306 | 276562 | 823156 | 827249 |
| Selling, general and administrative expenses | 255559 | 255790 | 780895 | 743664 |
| Impairment of goodwill and intangible assets | 372323 | 415491 | 372323 | 415491 |
| &nbsp;&nbsp;Loss from operations | (353576) | (394719) | (330062) | (331906) |
| Interest expense | (123993) | (124120) | (363519) | (325687) |
| Bargain purchase gain | 47840 |  | 47840 |  |
| Foreign exchange gain (loss) | (3135) | 782 | 605 | (6004) |
| Other income, net | 892 | 994 | 2362 | 4550 |
| &nbsp;&nbsp;&nbsp;Loss before income taxes | (431972) | (517063) | (642774) | (659047) |
| Income tax (benefit) | (75991) | (40029) | (116201) | (56219) |
| &nbsp;&nbsp;Net loss | $(355981) | $(477034) | $(526573) | $(602828) |

---

*See accompanying notes to the condensed consolidated financial statements.*

------

<u>[**Table of Contents**](#i32b10ec0f0874682a9bdcae320fff6bf_7)</u><br>

**CORNERSTONE BUILDING BRANDS, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS**

**(In thousands)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 27, 2025** | **September 28, 2024** | **September 27, 2025** | **September 28, 2024** |
| Net loss | $(355981) | $(477034) | $(526573) | $(602828) |
| Other comprehensive loss, net of income tax |  |  |  |  |
| &nbsp;&nbsp;Foreign exchange translation gain (loss) | (5284) | 1221 | 7177 | (1049) |
| &nbsp;&nbsp;Unrealized gain (loss) on derivative instruments, net of income tax of $(147), $9,843, $(430) and $3,510 | (1431) | (15471) | 974 | 10031 |
| &nbsp;&nbsp;Amount reclassified from accumulated other comprehensive loss into earnings, from derivative instruments, net of income tax of $1,353, $(2842), $3,981 and $1,599 | (1526) | (7910) | (13219) | (27118) |
| Other comprehensive loss | (8241) | (22160) | (5068) | (18136) |
| Comprehensive loss | $(364222) | $(499194) | $(531641) | $(620964) |

---

*See accompanying notes to the condensed consolidated financial statements.* 

------

<u>[**Table of Contents**](#i32b10ec0f0874682a9bdcae320fff6bf_7)</u><br>

**CORNERSTONE BUILDING BRANDS, INC.** 

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(In thousands, except share data)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **September 27, 2025** | **December 31,<br>2024** |
| **ASSETS** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $181936 | $159529 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 730287 | 563916 |
| &nbsp;&nbsp;&nbsp;Inventories, net | 787377 | 610177 |
| &nbsp;&nbsp;&nbsp;Assets held for sale | 147011 |  |
| &nbsp;&nbsp;&nbsp;Other current assets | 119136 | 158603 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 1965747 | 1492225 |
| Property, plant and equipment, net | 1054946 | 1127037 |
| Lease right-of-use assets | 475574 | 506827 |
| Goodwill | 737936 | 1105732 |
| Intangible assets, net | 2250566 | 2387905 |
| Other assets, net | 51781 | 65420 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $6536550 | $6685146 |
| **LIABILITIES AND EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | $42500 | $34000 |
| &nbsp;&nbsp;&nbsp;Short-term borrowings |  | 95000 |
| &nbsp;&nbsp;&nbsp;Current portion of lease liabilities | 94806 | 85052 |
| &nbsp;&nbsp;&nbsp;Accounts payable | 310714 | 252004 |
| &nbsp;&nbsp;&nbsp;Accrued income and other taxes | 33280 | 17325 |
| &nbsp;&nbsp;&nbsp;Employee-related liabilities | 101258 | 86516 |
| &nbsp;&nbsp;&nbsp;Rebates, warranties and other customer-related liabilities | 156707 | 147280 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 33711 | 69334 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 52072 | 97827 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 825048 | 884338 |
| Long-term debt | 5021242 | 4421528 |
| Long-term lease liabilities | 374796 | 408157 |
| Deferred income tax liabilities | 403156 | 531352 |
| Other long-term liabilities | 239534 | 234894 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | $6863776 | $6480269 |
| Commitments and contingencies (Note 13) |  |  |
| Equity: |  |  |
| Common stock, $0.01 par value, 1,000 shares authorized, issued and outstanding at September 27, 2025 and December 31, 2024 | $— | $— |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 1540110 | 1540572 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (1855004) | (1328431) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (12332) | (7264) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total equity (deficit) | (327226) | 204877 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and equity | $6536550 | $6685146 |

---

*See accompanying notes to the condensed consolidated financial statements.*

------

<u>[**Table of Contents**](#i32b10ec0f0874682a9bdcae320fff6bf_7)</u><br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **CORNERSTONE BUILDING BRANDS, INC.** | **CORNERSTONE BUILDING BRANDS, INC.** | **CORNERSTONE BUILDING BRANDS, INC.** | **CORNERSTONE BUILDING BRANDS, INC.** | **CORNERSTONE BUILDING BRANDS, INC.** | **CORNERSTONE BUILDING BRANDS, INC.** | **CORNERSTONE BUILDING BRANDS, INC.** |
| **CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)** | **CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)** | **CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)** | **CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)** | **CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)** | **CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)** | **CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)** |
| **(In thousands, except share data)** | **(In thousands, except share data)** | **(In thousands, except share data)** | **(In thousands, except share data)** | **(In thousands, except share data)** | **(In thousands, except share data)** | **(In thousands, except share data)** |
| **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| | **Common Stock** | **Common Stock** | **Additional Paid-In Capital** | **Accumulated Deficit** | **Accumulated Other Comprehensive Income (Loss)** | **Total Equity (Deficit)** |
| | **Shares** | **Amount** | **Additional Paid-In Capital** | **Accumulated Deficit** | **Accumulated Other Comprehensive Income (Loss)** | **Total Equity (Deficit)** |
| **Balance, June 28, 2025** | 1000 | $— | $1538155 | $(1499023) | $(4091) | $35041 |
| Other comprehensive loss |  |  |  |  | (8241) | (8241) |
| Share-based compensation |  |  | 1955 |  |  | 1955 |
| Net loss |  |  |  | (355981) |  | (355981) |
| **Balance, September 27, 2025** | 1000 | $— | $1540110 | $(1855004) | $(12332) | $(327226) |
| **Balance, June 29, 2024** | 1000 | $— | $1537176 | $(264815) | $21891 | $1294252 |
| Other comprehensive loss |  |  |  |  | (22160) | (22160) |
| Share-based compensation |  |  | 1705 |  |  | 1705 |
| Net loss |  |  |  | (477034) |  | (477034) |
| **Balance, September 28, 2024** | 1000 | $— | $1538881 | $(741849) | $(269) | $796763 |

---

*See accompanying notes to the condensed consolidated financial statements.*

------

<u>[**Table of Contents**](#i32b10ec0f0874682a9bdcae320fff6bf_7)</u><br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **CORNERSTONE BUILDING BRANDS, INC.** | **CORNERSTONE BUILDING BRANDS, INC.** | **CORNERSTONE BUILDING BRANDS, INC.** | **CORNERSTONE BUILDING BRANDS, INC.** | **CORNERSTONE BUILDING BRANDS, INC.** | **CORNERSTONE BUILDING BRANDS, INC.** | **CORNERSTONE BUILDING BRANDS, INC.** |
| **CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)** | **CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)** | **CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)** | **CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)** | **CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)** | **CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)** | **CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)** |
| **(In thousands, except share data)** | **(In thousands, except share data)** | **(In thousands, except share data)** | **(In thousands, except share data)** | **(In thousands, except share data)** | **(In thousands, except share data)** | **(In thousands, except share data)** |
| **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| | **Common Stock** | **Common Stock** | **Additional Paid-In Capital** | **Accumulated Deficit** | **Accumulated Other Comprehensive Income (Loss)** | **Total Equity (Deficit)** |
| | **Shares** | **Amount** | **Additional Paid-In Capital** | **Accumulated Deficit** | **Accumulated Other Comprehensive Income (Loss)** | **Total Equity (Deficit)** |
| **Balance, December 31, 2024** | 1000 | $— | $1540572 | $(1328431) | $(7264) | $204877 |
| Other comprehensive loss |  |  |  |  | (5068) | (5068) |
| Share-based compensation |  |  | (462) |  |  | (462) |
| Net loss |  |  |  | (526573) |  | (526573) |
| **Balance, September 27, 2025** | 1000 | $— | $1540110 | $(1855004) | $(12332) | $(327226) |
| **Balance, December 31, 2023** | 1000 | $— | $1766024 | $(139021) | $17867 | $1644870 |
| Other comprehensive loss |  |  |  |  | (18136) | (18136) |
| Share-based compensation |  |  | 4482 |  |  | 4482 |
| Dividend to Parent |  |  | (231625) |  |  | (231625) |
| Net loss |  |  |  | (602828) |  | (602828) |
| **Balance, September 28, 2024** | 1000 | $— | $1538881 | $(741849) | $(269) | $796763 |

---

*See accompanying notes to the condensed consolidated financial statements.*

------

<u>[**Table of Contents**](#i32b10ec0f0874682a9bdcae320fff6bf_7)</u><br>

---

| | | |
|:---|:---|:---|
| **CORNERSTONE BUILDING BRANDS, INC.** | **CORNERSTONE BUILDING BRANDS, INC.** | **CORNERSTONE BUILDING BRANDS, INC.** |
| **CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS** |
| **(In thousands)** | **(In thousands)** | **(In thousands)** |
| **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| | **Nine Months Ended** | **Nine Months Ended** |
| | **September 27, 2025** | **September 28, 2024** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;Net loss | $(526573) | $(602828) |
| &nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 339190 | 296441 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs, debt discount and fair values | 80452 | 74629 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment of goodwill and intangible assets | 372323 | 415491 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense | (462) | 4482 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition related step-up adjustments | 5343 | 16509 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of assets | 3334 | 2212 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration | (619) | 4856 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bargain purchase gain | (47840) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gain) loss on foreign currency exchange rates | (605) | 6004 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 6267 | 5982 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (136143) | (121222) |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities, net of effect of acquisitions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | (128519) | (94838) |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | (93212) | (57479) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes | 24030 | (28875) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 23771 | (6096) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 30743 | (8198) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | (71741) | (65275) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | 3996 | (19357) |
| &nbsp;&nbsp;Net cash flows used in operating activities | (116265) | (177562) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisitions, net of cash acquired | (186698) | (929801) |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (108955) | (155820) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of property, plant and equipment | 2351 | 5056 |
| &nbsp;&nbsp;Net cash flows used in investing activities | (293302) | (1080565) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from revolving credit facilities | 460000 | 1200000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayments of revolving credit facilities |  | (995000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from term loans |  | 500000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments on term loans | (17000) | (14500) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from senior notes |  | 500000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of financing costs |  | (12335) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of contingent consideration | (11488) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividend payment to parent |  | (231625) |
| &nbsp;&nbsp;Net cash flows from financing activities | 431512 | 946540 |
| Effect of exchange rate changes on cash and cash equivalents | 462 | 1005 |
| Net increase (decrease) in cash and cash equivalents | 22407 | (310582) |
| Cash and cash equivalents at beginning of period | 159529 | 468877 |
| Cash and cash equivalents at end of period | $181936 | $158295 |

---

*See accompanying notes to the condensed consolidated financial statements.*

------

<u>[**Table of Contents**](#i32b10ec0f0874682a9bdcae320fff6bf_7)</u><br>

**CORNERSTONE BUILDING BRANDS, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data, unless otherwise noted)**

**(Unaudited)**

**Note 1 — Basis of Presentation**

***Description of Business***

Cornerstone Building Brands, Inc. ("Cornerstone Building Brands" or, collectively with its subsidiaries, unless the context requires otherwise, the "Company") is a holding company incorporated in the State of Delaware. The Company is a leading exterior building products manufacturer by sales in North America and serves residential and commercial customers across new construction and the repair and remodel end markets. The Company is organized in three reportable segments, which we have renamed as follows: Windows & Doors (formerly "Aperture Solutions"), Siding & Accessories (formerly "Surface Solutions") and Metal Solutions (formerly "Shelter Solutions"). We renamed our reportable segments to better reflect our portfolio and services and to provide greater clarity to investors and stakeholders, including our customers. There was no change in the composition of our reportable segments. For additional information about the Company's segments, see Note 14.

***Basis of Presentation***

The accompanying Condensed Consolidated Financial Statements are presented in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). These Condensed Consolidated Financial Statements have been prepared in accordance with the Company's accounting policies and on the same basis as those financial statements included in the Company's latest Annual Report on Form 10-K for the year ended December 31, 2024, and should be read in conjunction with those Consolidated Financial Statements and the Notes thereto. Certain disclosures normally included in the Company's Consolidated Financial Statements prepared in accordance with U.S. GAAP have been omitted on a basis consistent with the rules and regulations of the SEC. Certain items have been reclassified in the prior year disclosures to conform to the current year presentation.

The accompanying Condensed Consolidated Financial Statements include the accounts and operations of the Company and its majority-owned subsidiaries and all adjustments (consisting of normal recurring adjustments) that the Company considered necessary to present a fair statement of its results of operations, financial position and cash flows. All significant intercompany accounts and transactions have been eliminated in consolidation.

**Note 2 — Significant Accounting Policies**

***Use of Estimates***

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, net sales and expenses and related disclosures of contingent assets and liabilities in the Condensed Consolidated Financial Statements and accompanying notes. These estimates include, but are not limited to: establishing the allowance for expected credit losses; the allowance for slow moving and obsolete inventory; the valuation of goodwill; establishing useful lives for and evaluating the recovery of our finite-life, long-lived assets; recognizing the fair value of assets acquired and liabilities assumed in business combinations; determining the fair value of contingent consideration; accounting for rebates and product warranties; the valuation and expensing for share-based compensation; certain assumptions made in accounting for pension benefits; accounting for contingencies and uncertainties; and accounting for income taxes. Actual results may differ from the estimates used in preparing the Condensed Consolidated Financial Statements.

***Cash and Cash Equivalents***

Cash and cash equivalents mainly consist of highly liquid, unrestricted savings, checking, money market funds with original maturities of less than three months and other bank accounts.

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***Accounts Receivable, Net***

The Company reports accounts receivable net of an allowance for expected credit losses. The Company establishes provisions for expected credit losses based on the Company's assessment of the collectability of amounts owed to the Company by its customers. Such allowances are included in Selling, general and administrative expenses in the Company's Condensed Consolidated Statements of Loss. In establishing the allowance, the Company considers changes in the financial position of a customer, age of the accounts receivable balances, availability of security, unusual macroeconomic conditions, lien rights and bond rights as well as disputes, if any, with its customers. Uncollectible accounts are written off when a settlement is reached for an amount that is less than the outstanding historical balance, all collection efforts have been exhausted, or any legal action taken by the Company has concluded. The Company's allowance for expected credit losses was $21.1 million and $26.3 million at September 27, 2025 and December 31, 2024, respectively.

***Assets Held for Sale***

The Company records assets held for sale at the lower of the carrying value or fair value less costs to sell. The following criteria are used to determine if property is held for sale: (i) management has the authority and commits to a plan to sell the property; (ii) the property is available for immediate sale in its present condition; (iii) there is an active program to locate a buyer and the plan to sell the property has been initiated; (iv) the sale of the property is probable within one year; (v) the property is being actively marketed at a reasonable sale price relative to its current fair value; and (vi) it is unlikely that the plan to sell will be withdrawn or that significant changes to the plan will be made. In determining the fair value of the assets less costs to sell, the Company considers factors including current sales prices for comparable assets in the area, recent market analysis studies, appraisals and any recent legitimate offers. If the estimated fair value less costs to sell of an asset is less than its current carrying value, the asset is written down to its estimated fair value less costs to sell.

During the three months ended September 27, 2025, the Company reclassified the land and buildings assets related to certain facilities within the Metal Solutions segment from Property, plant and equipment, net to Assets held for sale on the Condensed Consolidated Balance Sheets. The total carrying amount of assets held for sale was $147.0 million as of September 27, 2025. Assets held for sale as of September 27, 2025 are being marketed for sale in a potential sale leaseback transaction, which the Company currently expects to be completed within twelve months.

***Recent Accounting Pronouncements***

In December 2023, the FASB issued ASU No. 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures* ("ASU 2023-09"). ASU 2023-09 requires companies to provide enhanced rate reconciliation disclosures, including disclosure of specific categories and additional information for reconciling items. The standard also requires companies to disaggregate income taxes paid by federal, state and foreign taxes. This ASU is applicable to the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2025. Prospective application is required, with retrospective application permitted. The Company evaluated the impact of adopting ASU 2023-09 and expects it to result in additional disclosures, upon adoption.

In November 2024, the FASB issued ASU No. 2024-03, *Income Statement — Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,* which improves disclosure requirements and provides more detailed information about an entity's expenses, specifically amounts related to purchases of inventory, employee compensation, depreciation, intangible asset amortization, and selling expenses, along with qualitative descriptions of certain other types of expenses. This change is effective for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the effect the updated guidance will have on its financial statement disclosures.

In July 2025, the FASB issued ASU No. 2025-05, *Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets* ("ASU 2025-05"). ASU 2025-05 provides entities a practical expedient to simplify the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606, *Revenue From Contracts With Customers.* Under this practical expedient, an entity is allowed to assume that the current conditions it has applied in determining credit loss allowances for current accounts receivable and current contract assets remain unchanged for the remaining life of those assets. This change is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. Entities that elect the practical expedient and, if applicable, make the accounting policy election are required to apply the new guidance prospectively. The Company is currently evaluating the effect of ASU 2025-05 and whether to apply the practical expedient, but it does not anticipate there will be a material impact on its consolidated financial statements or disclosures.

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In September 2025, the FASB issued ASU No. 2025-06, *Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software* ("ASU 2025-06"). ASU 2025-06 modernizes and clarifies the threshold for when an entity is required to start capitalizing software costs and is based on when (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. This change is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. Entities can elect to apply this guidance prospectively, retrospectively or using a modified transition approach. The Company is currently evaluating the impact of ASU 2025-06 on its consolidated financial statements and disclosures.

**Note 3 — Acquisitions**

***Acquisition of Metal Sales***

In September 2025, the Company completed the acquisition of Metal Sales Manufacturing Corporation ("Metal Sales") for a preliminary purchase price of $181.8 million, including a base purchase price of $200.0 million, subject to closing date cash and working capital adjustments. Headquartered in Sellersburg, Indiana, Metal Sales is a leading manufacturer of metal building systems and components serving high-growth and diverse end-markets through a vast, multi-channel network. Metal Sales has approximately 900 employees at 21 facilities across the United States. This acquisition was funded by borrowing under the Company's ABL Facility, defined in Note 7. Metal Sales is included in the Company's Metal Solutions reportable segment.

The purchase price allocation below is based upon provisional information and is subject to revision during the measurement period (up to one year from the acquisition date) as additional information concerning valuations is obtained. During the measurement period, as the Company obtains new information regarding facts and circumstances that existed as of the acquisition date that, if known, would have resulted in revised estimated values of those assets or liabilities, the Company will accordingly revise the provisional purchase price allocation, which may include, but are not limited to, adjustments pertaining to intangible assets acquired, property, plant and equipment acquired and tax liabilities assumed.

The following table summarizes the provisional fair value of net assets acquired and liabilities assumed:

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| | |
|:---|:---|
| ***($ Amounts in thousands)*** | **Fair Value** |
| **Assets acquired and liabilities assumed:** | |
| &nbsp;&nbsp;Cash and cash equivalents | $1499 |
| &nbsp;&nbsp;Accounts receivable | 41720 |
| &nbsp;&nbsp;Inventories | 78941 |
| &nbsp;&nbsp;Property, plant and equipment | 152055 |
| &nbsp;&nbsp;Trade name and customer relationship intangibles | 11000 |
| &nbsp;&nbsp;Lease right-of-use asset | 8911 |
| &nbsp;&nbsp;Other assets | 2164 |
| Total assets acquired | 296290 |
| &nbsp;&nbsp;Accounts payable and other liabilities assumed | 21843 |
| &nbsp;&nbsp;Employee related liabilities | 5277 |
| &nbsp;&nbsp;Lease liabilities | 8798 |
| &nbsp;&nbsp;Rebates and customer related liabilities | 7404 |
| &nbsp;&nbsp;Deferred income tax liabilities | 15711 |
| &nbsp;&nbsp;Other liabilities assumed | 7601 |
| Total liabilities assumed | 66634 |
| Net assets acquired | 229656 |
| Net purchase price | (181816) |
| Bargain purchase gain | $47840 |

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The fair value and expected useful life of identifiable intangible assets consists of the following:

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| | | |
|:---|:---|:---|
| ***($ Amounts in thousands)*** | **Fair Value** | **Useful Life in Years** |
| Customer relationships | $8000 | 15 |
| Trade names and other | 3000 | 5 |
| &nbsp;&nbsp;Total | $11000 |  |

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As a result of the transaction, the Company recognized a bargain purchase gain of $47.8 million, representing the excess of the fair value of the net assets acquired over the consideration transferred to the seller. The Company believes the bargain purchase gain resulted from an opportunistic transaction.

***Unaudited Pro Forma Financial Information***

Pro forma results of operations for the Metal Sales acquisition have not been presented, as the impact on the Company's consolidated financial results was not material.

***Acquisition of Cold Rolled Steel***

In July 2025, the Company completed the acquisition of Cold Rolled Steel, LLC ("Cold Rolled Steel"), a metal building component manufacturer, for a preliminary purchase price of $6.4 million, including a base purchase price of $6.5 million, less certain working capital adjustments. Cold Rolled Steel is included in the Company's Metal Solutions reportable segment.

***Acquisition of Mueller Supply Company, Inc.***

In July 2024, the Company completed the acquisition of Mueller Supply Company, Inc. ("Mueller") for a purchase price of $495.9 million, including a base purchase price of $475.0 million, in addition to closing date cash and working capital adjustments. Mueller is a leading manufacturer of residential metal roofing and components and steel buildings in Texas and the Southwest United States ("U.S."). Mueller has approximately 900 employees and a comprehensive regional footprint including 38 retail branches and five manufacturing sites in Amarillo, Ballinger and Huntsville, Texas; Oak Grove, Louisiana; and Phoenix, Arizona. This acquisition was funded by issuing long-term debt. The Company's long-term debt is described in Note 7. Mueller is included in the Company's Metal Solutions reportable segment.

The following table summarizes the fair value of net assets acquired:

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| | |
|:---|:---|
| ***($ Amounts in thousands)*** | **Fair Value** |
| &nbsp;&nbsp;Cash and cash equivalents | $18074 |
| &nbsp;&nbsp;Accounts receivable | 10346 |
| &nbsp;&nbsp;Inventories | 126516 |
| &nbsp;&nbsp;Property, plant and equipment | 207912 |
| &nbsp;&nbsp;Lease right-of-use assets | 8031 |
| &nbsp;&nbsp;Goodwill | 107665 |
| &nbsp;&nbsp;Trade name and customer relationship intangibles | 108000 |
| &nbsp;&nbsp;Equity investment | 11000 |
| &nbsp;&nbsp;Other assets | 5803 |
| Total assets acquired | 603347 |
| &nbsp;&nbsp;Accounts payable and other liabilities assumed | 6784 |
| &nbsp;&nbsp;Employee related liabilities | 6234 |
| &nbsp;&nbsp;Lease liabilities | 8031 |
| &nbsp;&nbsp;Rebates and customer related liabilities | 16698 |
| &nbsp;&nbsp;Deferred income tax liabilities | 69709 |
| Total liabilities assumed | 107456 |
| Net assets acquired | $495891 |

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During the three months ended September 27, 2025, the Company recognized an increase of $8.0 million related to lease right-of-use assets, an increase of $8.0 million related to lease liabilities, a decrease of $0.2 million in goodwill, a decrease of $2.0 million in accounts payable and other liabilities related to income taxes payable and an increase of $1.8 million in deferred income tax liabilities. The Company recorded these measurement period adjustments to finalize the purchase price allocation based upon further analysis of information subsequent to the acquisition date. These adjustments did not have a material impact on the Company's Condensed Consolidated Statements of Loss for the period ended September 27, 2025.

As part of the Mueller transaction, the Company acquired a 33.33% interest in BDM Metal Coaters, LLC ("BDM"). The general purpose of BDM is the establishment and operation of a processing facility for the slitting and coating of hot roll steel coils. The Company possesses the ability to exercise significant influence, but not control, over the operating and financial policies of BDM; therefore, the Company accounts for the investment under the equity method of accounting. The carrying value of the investment was $11.7 million as of September 27, 2025 and $11.1 million as of December 31, 2024. The investment in BDM is recognized in Other assets, net on our Condensed Consolidated Balance Sheets for both comparable periods.

The fair value and expected useful life of identifiable intangible assets consists of the following:

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| | | |
|:---|:---|:---|
| ***($ Amounts in thousands)*** | **Fair Value** | **Useful Life in Years** |
| Customer relationships | $30000 | 11 |
| Trade names and other | 78000 | 12 |
| &nbsp;&nbsp;Total | $108000 |  |

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The acquisition of Mueller resulted in the recognition of $107.7 million of goodwill. The goodwill recorded is a result of expected synergies and other benefits that we believe will result from the integration of the acquisition within our operations. Goodwill created as a result of the acquisition of Mueller is not deductible for tax purposes. A net deferred tax liability of $69.7 million was established as a result of the acquisition.

***Acquisition of Harvey Building Products Corp.***

In April 2024, the Company completed the acquisition of Harvey Building Products Corp. ("Harvey") for a purchase price of $460.7 million. Harvey is a manufacturer of high performing windows and doors, and its portfolio of industry leading brands include Harvey, Softlite and Thermo-Tech. Headquartered in Waltham, Massachusetts, Harvey has approximately 1,200 employees at four manufacturing facilities located throughout the Northeast and Midwest. Harvey specializes in premium, custom windows and doors primarily serving the Eastern U.S. This acquisition was funded by issuing long-term debt. The Company's long-term debt is described in Note 7. Harvey is included in the Company's Windows & Doors reportable segment. The purchase price allocation was finalized during the second quarter of 2025 and is no longer subject to change. Measurement period adjustments recorded in prior periods are reflected in the historical financial statements.

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The following table summarizes the fair value of net assets acquired:

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| | |
|:---|:---|
| ***($ Amounts in thousands)*** | **Fair Value** |
| &nbsp;&nbsp;Cash and cash equivalents | $10423 |
| &nbsp;&nbsp;Accounts receivable | 27223 |
| &nbsp;&nbsp;Inventories | 21084 |
| &nbsp;&nbsp;Property, plant and equipment | 47478 |
| &nbsp;&nbsp;Lease right-of-use assets | 123801 |
| &nbsp;&nbsp;Goodwill | 174002 |
| &nbsp;&nbsp;Trade name and customer relationship intangibles | 246000 |
| &nbsp;&nbsp;Other assets | 7375 |
| Total assets acquired | 657386 |
| &nbsp;&nbsp;Accounts payable and other liabilities assumed | 35943 |
| &nbsp;&nbsp;Employee related liabilities | 6793 |
| &nbsp;&nbsp;Lease liabilities | 104737 |
| &nbsp;&nbsp;Deferred income tax liabilities | 49251 |
| Total liabilities assumed | 196724 |
| Net assets acquired | $460662 |

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The fair value and expected useful life of identifiable intangible assets consists of the following:

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| | | |
|:---|:---|:---|
| ***($ Amounts in thousands)*** | **Fair Value** | **Useful Life in Years** |
| Customer relationships | $200000 | 12 |
| Trade names and other | 46000 | 12 |
| &nbsp;&nbsp;Total | $246000 |  |

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The acquisition of Harvey resulted in the recognition of $174.0 million of goodwill. The goodwill recorded is a result of expected synergies and other benefits that we believe will result from the integration of the acquisition with our operations. Goodwill created as a result of the acquisition of Harvey is not deductible for tax purposes. A net deferred tax liability of $49.3 million was established as a result of the acquisition.

***Contingent Consideration for Acquisition Completed during 2023***

In August 2023, the Company completed the acquisition of M.A.C. Métal Architectural Inc. ("MAC Metal"), which became an indirect wholly-owned subsidiary of the Company. Headquartered in Saint-Hubert, Quebec, MAC Metal serves the North American residential and commercial markets with high-end steel siding and roofing products. MAC Metal is included in the Company's Siding & Accessories reportable segment. The total purchase price included earn-out contingent consideration of $16.8 million payable over two consecutive twelve-month periods, with the first period starting in the month following the close of the acquisition; payments are based upon achieving certain adjusted EBITDA-based metrics, as defined in the purchase agreement. During the three and nine months ended September 27, 2025, the fair value of contingent consideration decreased $0.5 million and increased $0.2 million, respectively, including the impact of exchange rates. During the nine months ended September 27, 2025, the Company made a payment of $11.5 million to satisfy the first earn-out period. Total contingent consideration of $9.8 million as of September 27, 2025 and $21.1 million as of December 31, 2024 is recognized in Other current liabilities on our Condensed Consolidated Balance Sheets.

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**Note 4 — Inventories, net**

The following table sets forth the components of inventories:

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| | | |
|:---|:---|:---|
| ***($ Amounts in thousands)*** | **September 27,<br>2025** | **December 31,<br>2024** |
| Raw materials and work in process<sup>(1)</sup> | $531062 | $402294 |
| Finished goods | 256315 | 207883 |
| &nbsp;&nbsp;Total inventories, net | $787377 | $610177 |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;The Company's work in process inventory is not significant to our Consolidated Balance Sheet due to the nature of our production processes.

**Note 5 — Goodwill and Intangible Assets**

The following table sets forth the changes in the carrying amount of goodwill by reportable segment and the accumulated impact of impairment loss:

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| | | | | |
|:---|:---|:---|:---|:---|
| ***($ Amounts in thousands)*** | **Windows & Doors** | **Siding & Accessories** | **Metal Solutions** | **Total** |
| Balance, as of December 31, 2024 | $452726 | $335544 | $317462 | $1105732 |
| &nbsp;&nbsp;Impact of acquisitions and related measurement period adjustments <sup>(1)</sup> | 1340 |  | 663 | 2003 |
| &nbsp;&nbsp;&nbsp;Impairment | (372323) |  |  | (372323) |
| &nbsp;&nbsp;&nbsp;Currency translation | 526 | 1998 |  | 2524 |
| Balance, September 27, 2025 | $82269 | $337542 | $318125 | $737936 |
| Goodwill | $950741 | $707445 | $318125 | $1976311 |
| Accumulated impairment loss | (868472) | (369903) |  | (1238375) |
| Balance, September 27, 2025 | $82269 | $337542 | $318125 | $737936 |

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(1) Measurement period adjustments have been recorded in conjunction with the Harvey and Mueller acquisitions during the period. See Note 3 for additional information.

Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. The Company evaluates goodwill for impairment at least annually as of November 1, or whenever events occur or circumstances indicate that it is more likely than not that the fair value of a reporting unit or a long-lived asset is below its carrying value. The process for evaluating potential impairment of goodwill is subjective and requires significant judgment. In estimating the fair value of our reporting units for the purposes of our annual or periodic impairment analyses, we make estimates or significant judgments about the future cash flows of each reporting unit. Our cash flow forecasts are based on assumptions that represent what we believe to be the highest and best use for our reporting units. Changes in judgment on these assumptions and estimates could result in goodwill impairment charges. We believe that the assumptions and estimates utilized are appropriate based upon the information available to management.

The Company has six reporting units. One of our reporting units, Windows & Doors–U.S., which is part of the Windows & Doors reportable segment has experienced adverse impacts as a result of changes in market conditions and continued high-interest rates relative to recent historical values, which has contributed to reduced forecasted revenues and reduced projected future cash flows. These events indicated to the Company that the carrying amounts of goodwill within the Windows & Doors reportable segment was in excess of its estimated fair value. As a result, during September 2025, the Company evaluated goodwill and other long-lived assets for impairment at the reporting unit level.

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The Company performed a quantitative assessment of goodwill impairment by comparing the fair value of its reporting units to their respective carrying amounts. When performing the assessment, the Company determined the fair value of its reporting units and determined that the carrying amount of goodwill for its Windows & Doors–U.S. reporting unit was impaired during the three months ended September 27, 2025. As a result, the Company recorded a $372.3 million impairment charge related to Windows & Doors–U.S. Additional impairment charges, including related to goodwill, may be required in future periods if Windows & Doors–U.S. or other reporting units do not meet their current financial forecasts.

The Company uses a quantitative approach to measure the fair value of its reporting units by equally weighting the discounted cash flow approach, which is a Level 3 measurement, and the market approach, which is a Level 2 measurement. The market approach estimates fair value through recent sales of comparable assets or business entities. The discounted cash flow analysis requires significant judgments, including estimates of future cash flows, which are dependent on internal forecasts and determination of the Company's weighted average cost of capital. The weighted average cost of capital used for all reporting units in the Company's analysis ranged from 12.0% to 13.5%.

These and our other reporting units have a heightened risk of future impairments if any assumptions, estimates, or market factors change in the future. See Risk Factor, "Any impairment of our goodwill, intangible or other long-lived assets could negatively impact our results of operations and financial condition," in Part I, Item 1A of our Annual Report on <u>[Form 10-K](https://www.sec.gov/Archives/edgar/data/883902/000088390225000004/cnr-20241231.htm)</u> for the fiscal year ended December 31, 2024 (the "2024 Form 10-K").

***Intangible Assets, Net***

The following table sets forth the major components of intangible assets:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ***($ Amounts in thousands)*** | **Range of Life<br>in Years** | **Range of Life<br>in Years** | **Weighted Average Amortization Remaining Years** | **Carrying Value** | **Accumulated Amortization** | **Net Carrying Value** |
| As of September 27, 2025 <sup>(1)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Customer lists and relationships | 3 | 19 | 15 | $2112489 | $(466397) | $1646092 |
| &nbsp;&nbsp;&nbsp;Trademarks, trade names and other | 5 | 15 | 12 | 744974 | (140500) | 604474 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total intangible assets |  |  |  | $2857463 | $(606897) | $2250566 |
| ***($ Amounts in thousands)*** | **Range of Life<br>in Years** | **Range of Life<br>in Years** | **Weighted Average Amortization Remaining Years** | **Carrying Value** | **Accumulated Amortization** | **Net Carrying Value** |
| As of December 31, 2024 <sup>(1)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Customer lists and relationships | 3 | 19 | 15 | $2100469 | $(351129) | $1749340 |
| &nbsp;&nbsp;&nbsp;Trademarks, trade names and other | 12 | 15 | 12 | 740113 | (101548) | 638565 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total intangible assets |  |  |  | $2840582 | $(452677) | $2387905 |

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(1) Net of accumulated impairment loss of $32.7 million as of September 27, 2025 and December 31, 2024.

Intangible assets are amortized on a straight-line basis. The following table sets forth the amortization expense related to intangible assets:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 27, 2025** | **September 28, 2024** | **September 27, 2025** | **September 28, 2024** |
| Amortization expense | $46232 | $55185 | $152929 | $151384 |

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**Note 6 — Product Warranties**

The following table sets forth the changes in the carrying amount of product warranties liability:

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| | | |
|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** |
| ***($ Amounts in thousands)*** | **September 27, 2025** | **September 28, 2024** |
| Balance, beginning of period | $188296 | $194237 |
| &nbsp;&nbsp;&nbsp;Expense | 12822 | 14345 |
| &nbsp;&nbsp;&nbsp;Claims and settlements | (12854) | (14665) |
| &nbsp;&nbsp;&nbsp;&nbsp;Impact of acquisitions | 1696 | 11998 |
| &nbsp;&nbsp;&nbsp;Reclassification of deferred warranty revenue<sup>(1)</sup> |  | (24717) |
| Balance, end of period | $189960 | $181198 |
| Reflected as: |  |  |
| &nbsp;&nbsp;&nbsp;Current liabilities – Rebates, warranties and other customer-related liabilities | $23977 | $21456 |
| &nbsp;&nbsp;&nbsp;Noncurrent liabilities – Other long-term liabilities | 165983 | 159742 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total product warranty liability | $189960 | $181198 |

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(1) &nbsp;&nbsp;&nbsp;&nbsp;Reclassification of deferred warranty revenue for the Metal Solutions reportable segment that had historically been included in the warranty liability disclosure. Deferred warranty revenue of $2.5 million and $21.9 million is recorded in Other current liabilities and Other long-term liabilities, respectively, within our Consolidated Balance Sheets for year ended December 31, 2024.

**Note 7 — Debt**

The following table sets forth the components of long-term debt:

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **September 27, 2025** | **September 27, 2025** | **September 27, 2025** | **September 27, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***($ Amounts in thousands)*** |<br>**Effective Interest Rate** | **Principal Outstanding** | **Unamortized Fair Value Adjustment** <sup>(1)</sup> | **Unamortized Discount and <br>Issuance Costs** | **Carrying Amount** | **Principal Outstanding** | **Unamortized Fair Value Adjustment**<sup>(1)</sup> | **Unamortized Discount and <br>Issuance Costs** | **Carrying Amount** |
| Term loan facility, due April 2028 | 8.57% | $2489500 | $(183758) | $— | $2305742 | $2502500 | $(231851) | $— | $2270649 |
| Term loan facility, due August 2028 | 9.69% | 292500 |  | (12169) | 280331 | 294000 |  | (14926) | 279074 |
| Term loan facility, due May 2031 | 10.05% | 496250 |  | (4623) | 491627 | 498750 |  | (5089) | 493661 |
| 6.125% senior notes, due January 2029 | 13.51% | 318699 | (62835) |  | 255864 | 318699 | (73656) |  | 245043 |
| 8.750% senior secured notes, due August 2028 | 10.61% | 710000 |  | (28936) | 681064 | 710000 |  | (36099) | 673901 |
| 9.500% senior secured notes, due August 2029 | 9.88% | 500000 |  | (5886) | 494114 | 500000 |  | (6800) | 493200 |
| Total long-term debt |  | $4806949 | $(246593) | $(51614) | $4508742 | $4823949 | $(305507) | $(62914) | $4455528 |
| Reflected as: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current liabilities - Current portion of long-term debt | &nbsp;&nbsp;&nbsp;Current liabilities - Current portion of long-term debt | &nbsp;&nbsp;&nbsp;Current liabilities - Current portion of long-term debt | &nbsp;&nbsp;&nbsp;Current liabilities - Current portion of long-term debt | &nbsp;&nbsp;&nbsp;Current liabilities - Current portion of long-term debt | $42500 |  |  |  | $34000 |
| &nbsp;&nbsp;&nbsp;Non-current liabilities - Long-term debt | &nbsp;&nbsp;&nbsp;Non-current liabilities - Long-term debt | &nbsp;&nbsp;&nbsp;Non-current liabilities - Long-term debt | &nbsp;&nbsp;&nbsp;Non-current liabilities - Long-term debt | &nbsp;&nbsp;&nbsp;Non-current liabilities - Long-term debt | 4466242 |  |  |  | 4421528 |
| Total long-term debt | Total long-term debt | Total long-term debt | Total long-term debt | Total long-term debt | $4508742 |  |  |  | $4455528 |
| Fair value - Senior notes - Level 1 | Fair value - Senior notes - Level 1 | Fair value - Senior notes - Level 1 | Fair value - Senior notes - Level 1 | Fair value - Senior notes - Level 1 | $1438058 |  |  |  | $1429999 |
| Fair value - Term loans - Level 2 | Fair value - Term loans - Level 2 | Fair value - Term loans - Level 2 | Fair value - Term loans - Level 2 | Fair value - Term loans - Level 2 | 3112327 |  |  |  | 3167541 |
| Total fair value | Total fair value | Total fair value | Total fair value | Total fair value | $4550385 |  |  |  | $4597540 |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;As a result of pushdown accounting in connection with the merger in July 2022, pursuant to which Cornerstone Building Brands became a privately-held company (the "Merger"), the carrying values of the term loan facility due April 2028 and the 6.125% senior notes were adjusted to fair value.

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***Revolving Credit Facilities***

The following table sets forth the Company's availability under its revolving credit facilities:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **September 27, 2025** | **September 27, 2025** | **September 27, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| ***($ Amounts in thousands)*** | **Authorized** | **Borrowings** | **Letters of Credit and Priority Payables** | **Authorized** | **Borrowings** | **Letters of Credit and Priority Payables** |
| Asset-based lending facility, due May 2029<sup>(1)(2)</sup> | $850000 | $460000 | $68225 | $850000 | $— | $51374 |
| Cash flow revolver<sup>(3)</sup> | 92000 |  |  | 92000 |  |  |
| First-in-last-out tranche asset-based lending facility, due May 2029<sup>(1)</sup> | 95000 | 95000 |  | 95000 | 95000 |  |
| Total | $1037000 | $555000 | $68225 | $1037000 | $95000 | $51374 |

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(1) &nbsp;&nbsp;&nbsp;&nbsp;As of December 31, 2024, these borrowings are included in Short-term borrowings on the Consolidated Balance Sheets based on the Company's intention and ability to repay on a short-term basis.

(2) &nbsp;&nbsp;&nbsp;&nbsp;In October 2025, the Company repaid $25.0 million of its outstanding borrowings under this facility.

(3) &nbsp;&nbsp;&nbsp;&nbsp;Cash flow revolver commitment of $92.0 million will mature in May 2029.

The carrying amounts of the indebtedness under revolving credit facilities approximate fair value as the interest rates are variable and reflective of market rates.

***Issuance of 9.500% Senior Secured Notes due August 2029***

On August 7, 2024, the Company issued $500.0 million in aggregate principal amount of 9.500% Senior Secured Notes ("9.500% Senior Secured Notes") due August 2029 (subject to springing maturity under certain circumstances). Interest is payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2025.

The 9.500% Senior Secured Notes are secured senior indebtedness. The 9.500% Senior Secured Notes rank equal in right of payment with all existing and future senior indebtedness of the Company and are senior in right of payment to all existing and future subordinated indebtedness of the Company.

The Company may redeem the 9.500% Senior Secured Notes in whole or in part, subject to certain prepayment premiums if the 9.500% Senior Secured Notes were to be redeemed prior to August 15, 2028.

***Term Loan Facility, due April 2028, Term Loan Facility, due May 2031 and Cash Flow Revolver***

In April 2018, Ply Gem Midco entered into a Cash Flow Agreement (as amended from time to time, the "Cash Flow Credit Agreement"); facilities provided thereunder, including the Term Loan Facility, due April 2028, the Term Loan Facility, due May 2031 and the Cash Flow Revolver (each as defined below), the "Cash Flow Facilities"), which provides for (i) a term loan facility (the "Term Loan Facility, due April 2028") in the aggregate principal amount of $2,600.0 million, issued with a discount of 0.5% and (ii) a cash flow-based revolving credit facility (the "Cash Flow Revolver") of up to $115.0 million. In connection with the consummation of the Ply Gem merger, the Company and Ply Gem Midco entered into a joinder agreement in which the Company became the Borrower (as defined in the Cash Flow Credit Agreement) under the Cash Flow Credit Agreement. On April 11, 2023, the Company amended the Cash Flow Credit Agreement to replace the adjusted LIBOR rate with the Secured Overnight Financing Rate ("SOFR") rate. On May 15, 2024, the Company entered into a Fifth Amendment to the Cash Flow Credit Agreement (the "Cash Flow Fifth Amendment") to, among other things, (a) terminate the $92.0 million of commitments under the Cash Flow Revolver and replace such commitments with $92.0 million of extended cash flow-based revolving commitments, maturing on May 15, 2029 (subject to a springing maturity under certain circumstances) and (b) incur a new incremental term loan facility (the "Term Loan Facility, due May 2031") in the aggregate principal amount of $500.0 million, maturing on May 15, 2031 (subject to a springing maturity under certain circumstances).

The Term Loan Facility, due April 2028 amortizes in nominal quarterly installments equal to one percent of the aggregate initial principal amount thereof per annum, with the remaining balance payable upon final maturity. The Term Loan Facility, due April 2028 bears annual interest at a floating rate measured by reference to, at the Company's option, either (i) a Term SOFR rate with a credit spread adjustment of 0.10% (subject to a floor of 0.50%) plus an applicable margin of 3.25% per annum or (ii) an alternate base rate plus an applicable margin of 2.25% per annum.

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Loans outstanding under the Cash Flow Revolver bear annual interest at a floating rate measured by reference to, at the Company's option, either (i) a Daily Simple SOFR rate or a Term SOFR rate with (only in the case of Term SOFR rate borrowings with an interest period greater than one month) a credit spread adjustment of 0.10% (subject to a floor of 0.00%) plus an applicable margin ranging from 2.50% to 3.00% per annum depending on the Company's secured leverage ratio or (ii) an alternate base rate plus an applicable margin ranging from 1.50% to 2.00% per annum depending on the Company's secured leverage ratio. There are no amortization payments under the Cash Flow Revolver. Additionally, unused commitments under the Cash Flow Revolver are subject to a fee ranging from 0.25% to 0.50% per annum depending on the Company's secured leverage ratio.

The Term Loan Facility, due May 2031, amortizes in nominal quarterly installments equal to one percent of the aggregate initial principal amount thereof per annum, with the remaining balance payable upon maturity. The Term Loan Facility, due May 2031 bears annual interest at a floating rate measured by reference to, at the Company's option, either (i) a Term SOFR rate (subject to a floor of 0.50%) plus an applicable margin of 4.50% per annum or (ii) an alternate base rate plus an applicable margin of 3.50% per annum.

Subject to certain exceptions, the Term Loan Facility, due April 2028 and the Term Loan Facility, due May 2031 are subject to mandatory prepayments in an amount equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the net cash proceeds of (i) certain asset sales, (ii) certain debt offerings and (iii) certain insurance recovery and condemnation events; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 50% of annual excess cash flow (as defined in the Cash Flow Credit Agreement), subject to reduction to 25% and 0% if specified secured leverage ratio targets are met to the extent that the amount of such excess cash flow exceeds $10.0 million. No payments were required in 2022 under the year 2021 excess cash flow calculation.

The Term Loan Facility, due April 2028, the Term Loan Facility, due May 2031, and the Cash Flow Revolver may be prepaid at the Company's option at any time without premium or penalty (other than customary breakage costs), subject to minimum principal amount requirements.

***ABL Facility, due May 2029***

On April 12, 2018, Ply Gem Midco entered into an ABL Credit Agreement (as amended from time to time, the "ABL Credit Agreement"), consisting of: (a) an asset-based revolving credit facility of up to $850.0 million (as amended from time to time the "ABL Facility"), a portion of which is available to (i) U.S. borrowers and (ii) U.S. and Canadian borrowers. In connection with the consummation of the Ply Gem merger, the Company and Ply Gem Midco entered into a joinder agreement in which the Company became the Parent Borrower (as defined in the ABL Credit Agreement) under the ABL Facility, and (b) a first-in-last-out tranche asset-based revolving credit facility of up to $95.0 million (the "ABL FILO Facility") available to U.S. borrowers.

On May 15, 2024, the Company entered into Amendment No. 8 to the ABL Credit Agreement ("Amendment No. 8"), which amended the ABL Credit Agreement in order to terminate the existing revolving commitments under the ABL Facility and the ABL FILO Facility originally maturing on July 25, 2027 (the "Existing ABL Commitments"), and replace such Existing ABL Commitments with an extended revolving commitment of $945.0 million maturing on May 15, 2029 (subject to a springing maturity under certain circumstances), subject to the outstanding aggregate principal amount.

Borrowing availability under the ABL Facility and the ABL FILO Facility (collectively, the "ABL Facilities") is determined by a monthly borrowing base collateral calculation that is based on specified percentages of the value of eligible inventory, accounts receivable, less certain allowances and subject to certain other adjustments as set forth in the ABL Credit Agreement. Availability is reduced by issuance of letters of credit as well as any borrowings.

Loans outstanding under the ABL Facility bear interest at a floating rate measured by reference to, at the Company's option, either (i) a Term SOFR rate (subject to a SOFR floor of 0.00%) plus an applicable margin ranging from 1.25% to 1.75% per annum depending on the average daily excess availability under the ABL Facility or (ii) an alternate base rate plus an applicable margin ranging from 0.25% to 0.75% per annum depending on the average daily excess availability under the ABL Facility. Additionally, unused commitments under the ABL Facility are subject to a 0.25% per annum fee.

Loans outstanding under the ABL FILO Facility bear interest at a floating rate measured by reference to, at the Company's option, either (i) a term SOFR rate (subject to a SOFR floor of 0.00%) plus an applicable margin ranging from 2.25% to 2.75% per annum depending on the average daily excess availability under the ABL FILO Facility or (ii) an alternate base rate plus an applicable margin ranging from 1.25% to 1.75% per annum depending on the average daily excess availability under the ABL FILO Facility. Additionally, unused commitments under the ABL FILO Facility are subject to a 0.25% per annum fee.

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***Covenant Compliance***

The ABL Credit Agreement includes a minimum fixed charge coverage ratio of 1.00:1.00, which is tested only when specified availability is less than 10.0% of the lesser of (x) the then applicable borrowing base and (y) the then aggregate effective commitments under the ABL Facility and continuing until such time as specified availability has been in excess of such threshold for a period of 20 consecutive calendar days. The Cash Flow Credit Agreement includes a financial covenant set at a maximum secured leverage ratio of 7.75:1.00, which will apply if the outstanding amount of loans and drawings under letters of credit which have not then been reimbursed exceeds a specified threshold at the end of any fiscal quarter.

The Company's debt agreements contain a number of covenants that, among other things, limit or restrict the ability of the Company and its subsidiaries to incur additional indebtedness; make dividends and other restricted payments; incur additional liens; consolidate, merge, sell or otherwise dispose of all or substantially all assets; make investments; transfer or sell assets; enter into restrictive agreements; change the nature of the business; and enter into certain transactions with affiliates. The Company is in compliance with all of its covenants as of September 27, 2025.

***Interest Rate Swaps***

The Company uses certain interest rate swaps to manage a portion of the interest rate risk on its term loans. The following table sets forth the terms of the Company's interest rate swap agreements:

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| | |
|:---|:---|
| ***($ Amounts in thousands)*** | |
| Notional amount | $1500000 |
| Forecasted term loan interest payments being hedged | 1-month SOFR |
| Fixed rate paid | 2.0038% |
| Origination date | April 17, 2023 |
| Maturity date | April 15, 2026 |
| Fair value at September 27, 2025 - Other assets, net | $15027 |
| Fair value at December 31, 2024 - Other assets, net | $39159 |
| Level in fair value hierarchy<sup>(1)</sup> | Level 2 |

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(1)Interest rate swaps are based on cash flow hedge contracts that have fixed rate structures and are measured against market based SOFR yield curves. These interest rate swaps are classified within Level 2 of the fair value hierarchy because they are valued using alternative pricing sources or models that utilized market observable inputs, including current and forward interest rates.

**Note 8— Accumulated Other Comprehensive Income (Loss)**

The following tables set forth the change in accumulated other comprehensive income (loss) attributable to the Company by each component of accumulated other comprehensive income (loss), net of applicable income taxes:

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| | | | | |
|:---|:---|:---|:---|:---|
| ***($ Amounts in thousands)*** | **Foreign Currency Translation Adjustment** | **Derivatives, Net of Tax** | **Pensions, Net of Tax** | **Total Accumulated Other Comprehensive Income (Loss)** |
| Balance, June 28, 2025 | $(12631) | $7160 | $1380 | $(4091) |
| &nbsp;&nbsp;Other comprehensive income (loss) | (5284) | (2957) |  | (8241) |
| Balance, September 27, 2025 | $(17915) | $4203 | $1380 | $(12332) |
| Balance, June 29, 2024 | $(11823) | $32894 | $820 | $21891 |
| &nbsp;&nbsp;Other comprehensive income (loss) | 1221 | (23381) |  | (22160) |
| Balance, September 28, 2024 | $(10602) | $9513 | $820 | $(269) |

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| | | | | |
|:---|:---|:---|:---|:---|
| ***($ Amounts in thousands)*** | **Foreign Currency Translation Adjustment** | **Derivatives, Net of Tax** | **Pensions, Net of Tax** | **Total Accumulated Other Comprehensive (Loss) Income** |
| Balance, December 31, 2024 | $(25092) | $16448 | $1380 | $(7264) |
| &nbsp;&nbsp;Other comprehensive income (loss) | 7177 | (12245) |  | (5068) |
| Balance, September 27, 2025 | $(17915) | $4203 | $1380 | $(12332) |
| Balance, December 31, 2023 | $(9553) | $26600 | $820 | $17867 |
| &nbsp;&nbsp;Other comprehensive (loss) | (1049) | (17087) |  | (18136) |
| Balance, September 28, 2024 | $(10602) | $9513 | $820 | $(269) |

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**Note 9 — Share-Based Compensation**

***Incentive Unit Awards***

Beginning in the fourth quarter of 2022, pursuant to an incentive unit grant agreement, certain participants were granted incentive units in Camelot Return Ultimate, LP (the "Partnership" or "Camelot Return Ultimate"), an indirect parent of the Company. The incentive units provide the holder with the opportunity to receive, upon certain vesting events and subject to Partnership repurchase rights and conditions, a return based upon the appreciation of the Partnership's equity value from the date of grant. The incentive units vest over a five-year period on a straight-line basis. For the nine months ended September 27, 2025, 383,900 incentive units were granted at a weighted average grant date fair value of $41.22 per incentive unit. The Company recognized expense from incentive units of $1.9 million in the three months ended September 27, 2025, and $1.7 million for the three months ended September 28, 2024. The Company recognized a gain from incentive units of $0.5 million in the nine months ended September 27, 2025 and expense from incentive units of $4.5 million in the nine months ended September 28, 2024. The gain during the nine months ended September 27, 2025 is due to the reversal of prior expense from terminations. The Company estimates that the unrecognized expense is expected to be recognized over a weighted-average period of 3.8 years totaling $27.7 million.

**Note 10 — Income Taxes**

The following table sets forth the effective tax rate for the three and nine months ended September 27, 2025 and September 28, 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 27, 2025** | **September 28, 2024** | **September 27, 2025** | **September 28, 2024** |
| Effective tax rate | 17.6% | 7.7% | 18.1% | 8.5% |

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For the nine months ended September 27, 2025, the Company's estimated annual effective income tax rate of ordinary forecasted pre-tax book income was approximately 22.1%, which varied from the statutory tax rate primarily due to state income taxes, foreign tax rate differentials, and changes in the valuation allowance. For the nine months ended September 27, 2025, the effective tax rate was 18.1%, which varied from the annual effective tax rate due to discrete items recorded during the period, including the tax impact of the goodwill impairment, updates to state rates, and the tax impact of internal restructuring. The change in the effective tax rate for the three and nine months ended September 27, 2025 compared to the three and nine months ended September 28, 2024 is primarily due to the decrease in pre-tax book losses, offset by the bargain purchase gain in 2025, and the tax impacts of the current period goodwill impairment. The One Big Beautiful Bill Act ("OBBBA") was enacted on July 4, 2025, and the Company continues to evaluate the impact on its financial condition and results of operations.

**Note 11 — Fair Value of Financial Instruments and Fair Value Measurements**

The Company measures certain financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses a three-level hierarchy for fair value measurements based on the observability of inputs to the valuation of an asset or liability as of the measurement date. The three levels of the fair value hierarchy are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 – Unobservable inputs for the asset or liability, reflecting the Company's own assumptions about the assumptions that market participants would use in pricing the asset or liability.

***Fair Value Measurements on a Recurring Basis***

The following table presents the Company's financial assets and liabilities measured at fair value on a recurring basis as of September 27, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| ***($ Amounts in thousands)*** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Assets – Derivative instruments | $– $| 15027 | $— | $15027 |
| Liabilities – Contingent consideration | $– $|  | $9786 | $9786 |

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The following table presents the Company's financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| ***($ Amounts in thousands)*** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Assets – Derivative instruments | $– $| 39159 | $— | $39159 |
| Liabilities – Contingent consideration | $– $|  | $21122 | $21122 |

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The fair value for derivative instruments is determined using valuation models that incorporate observable market inputs, such as interest rates and currency exchange rates, and is classified within Level 2 of the fair value hierarchy.

The fair value of contingent consideration is estimated as of the date of the acquisition, is recorded as part of the purchase price, and is subsequently re-measured to fair value at each reporting date, based on a probability-weighted analysis using a rate that reflects the uncertainty of the expected outcomes, which the Company believes is appropriate and representative of market participant assumptions.

***Fair Value Measurement Disclosure***

The fair value of the Company's short-term debt is estimated using observable market inputs, including current interest rates for similar types of borrowings. The fair value of long-term debt is determined based on quoted prices for identical or similar instruments in active markets. The fair value of the senior notes is based on quoted prices in active markets for identical liabilities. The fair value of the term loans is based on recent trading activities of comparable market instruments.

***Non-Recurring Fair Value Measurements***

Certain assets and liabilities are measured at fair value on a non-recurring basis. These include assets and liabilities that are measured at fair value in the event of impairment or for disclosure purposes. The discounted cash flow method under the income approach is generally employed to estimate the fair value of the reporting units or identified asset groups. For reporting units, the guideline public company method and the guideline transaction method are also utilized under the market approach. Significant assumptions inherent in estimating fair values include the projected future annual net cash flows for each reporting unit, encompassing net sales, cost of sales, selling, general and administrative expenses, depreciation and amortization, working capital, and capital expenditures. Other critical assumptions involve income tax rates, long-term growth rates, and a discount rate that appropriately reflects the risks inherent in each future cash flow stream.

***Fair Value of Financial Instruments Not Measured at Fair Value***

The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued liabilities approximate their fair values due to their short-term nature.

**Note 12 — Related Party Transactions**

The Company had a related party receivable with CD&R of $0.9 million as of September 27, 2025 and $5.7 million as of December 31, 2024, representing legal fees paid on their behalf as part of the stockholder litigation described in Note 13.

The Company had a related party payable of $6.5 million and $6.0 million to our indirect parent, Camelot Return Ultimate, as of September 27, 2025 and December 31, 2024, respectively, representing monies paid by Company management for the purchase of incentive units in the Partnership. See Note 9 for further discussion of the incentive units.

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**Note 13 — Commitments and Contingencies**

As a manufacturer of products primarily for use in building construction, the Company is inherently exposed to various types of contingent claims, both asserted and unasserted, in the ordinary course of business. As a result, from time to time, the Company may become involved in various legal proceedings or other contingent matters arising from claims or potential claims arising out of its operations and businesses that cover a wide range of matters, including, among others, environmental, contract, employment, including applicable benefit and pension plans, intellectual property, securities, personal injury, property damage, product liability, warranty and modification, and adjustment or replacement of component parts or units sold, which may include product recalls. The Company insures (or self-insures) against these risks to the extent deemed prudent by its management and to the extent insurance is available. Management believes that the ultimate disposition of these matters will not have a material adverse effect on the Company's results of operations, financial position or cash flows. However, such matters are subject to many uncertainties and outcomes and are not predictable with assurance. The Company believes it is adequately reserved for all matters.

***Environmental***

The Company's operations are subject to various federal, state, local and foreign environmental, health and safety laws. Among other things, these laws regulate the emissions or discharge of contaminants into the environment; govern the use, storage, treatment, disposal and management of hazardous substances and wastes; protect employee health and safety, public health and welfare and the end-users of its products; regulate the chemicals used in its products; and impose liability for the costs of investigating and remediating (as well as other damages resulting from) present and past releases of hazardous substances. Violations of these laws or of any conditions contained in environmental permits could impact the Company's current and future operations.

The Company believes it is in material compliance with all applicable laws and regulations and has recorded a liability of $4.4 million and $4.1 million as of September 27, 2025 and December 31, 2024, respectively, for certain subsurface investigation and remedial matters.

***Litigation***

The Company is a party to a variety of legal actions arising out of the normal course of business. Plaintiffs occasionally seek punitive or exemplary damages. The Company is also included in other kinds of legal actions, some of which assert or may assert claims or seek to impose fines or penalties and other costs in substantial amounts and are described below.

***Stockholder Litigation***

In July 2022, and pursuant to an Agreement and Plan of Merger dated March 5, 2022 Clayton, Dubilier and Rice, LLC ("CD&R") became the indirect owner of Cornerstone Building Brands (the "Merger"). In January 2023, purported former stockholders filed 2 separate complaints challenging the fairness of the Merger. The complaints are captioned Firefighters' Pension System of the City of Kansas City, Missouri Trust and Gary D. Voigt v. Affeldt et al., C.A. No. 2023-0091-JTL (Del. Ch.) and Whitebark Value Partners LP and Robert Garfield v. Clayton Dubilier & Rice, LLC et al., C.A. No. 2023-0092-JTL (Del. Ch.). In both complaints, the plaintiffs allege that CD&R and its affiliates controlled the Company prior to the transaction and that certain directors and officers of the Company, as well as CD&R and its affiliates, breached their fiduciary duties and engaged in conduct resulting in a sale of the Cornerstone Building Brands public stockholders' shares to CD&R at an unfair price. The plaintiffs seek unspecified monetary damages, attorneys' fees, expenses and costs. The court consolidated the two cases, and on May 3, 2023, selected Whitebark Value Partners LP as lead plaintiff. On July 14, 2023, the defendants moved to dismiss the operative complaint. The motion to dismiss was denied on January 10, 2024, and the case is ongoing. On June 26, 2024, the plaintiffs filed an amended complaint. On February 24, 2025, the parties to the case filed a Stipulation of Compromise and Settlement ("Stipulation") setting forth their agreement to settle the litigation. The Stipulation provides for CD&R and the Company, on behalf of the defendants, to pay or cause their respective insurers to pay a total of $45.0 million into an escrow account that will be used to pay escrow expenses, satisfy any fee and incentive amounts awarded by the court in favor of plaintiff and plaintiff's counsel, and distribute the remaining funds to the non-affiliated shareholders of the Company. The Company's portion of the proposed settlement relating to its indemnification of its former directors and officers is recoverable from insurance. On May 29, 2025, the court held a hearing to consider the Stipulation, approved the Stipulation, and entered a final order approving the settlement and dismissing the plaintiff's claims with prejudice.

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In June 2023, a purported former stockholder filed a class action complaint in the United States District Court for the District of Delaware alleging that the Company's disclosures issued in connection with the Merger were materially misleading in violation of Section 14(a) and Section 20(a) of the Securities Exchange Act of 1934. The complaint is captioned Water Island Merger Arbitrage Institutional Commingled Master Fund, L.P. v. Cornerstone Building Brands et al., Case No. 1:23-cv-00701 (D. Del.). The complaint alleges that the Company's directors and officers issued misleading disclosures, which caused stockholders to approve the Merger at an unfair price. The plaintiff seeks unspecified monetary damages, interest, attorney's fees, expenses and costs. On December 8, 2023, the defendants moved to dismiss the operative complaint, and, in the alternative, to stay in litigation. On September 30, 2024, the court granted the defendants' motion to dismiss without prejudice. On October 15, 2024, the plaintiffs filed an amended complaint, which the defendants again moved to dismiss or stay on November 26, 2024. On June 23, 2025, the parties filed a stipulation and proposed order of dismissal. On June 24, 2025, the court entered the parties' stipulation to dismiss the plaintiffs' claims with prejudice.

**Note 14 — Reportable Segment and Geographical Information**

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker ("CODM") for purposes of allocating resources and evaluating financial performance. Our CODM, who is our Chief Executive Officer, reviews financial information presented on a consolidated basis for the purposes of allocating resources and evaluating financial performance. The Company is organized in five operating segments aggregated into three reportable segments: Windows & Doors (consisting of the Windows & Doors–U.S. and Windows & Doors–Canada operating segments), Siding & Accessories (consisting of the Siding & Accessories–U.S. and Siding & Accessories–Canada operating segments) and Metal Solutions, (itself an operating segment). The aggregated reportable segments share similar economic characteristics with respect to product offerings, manufacturing processes, and customer demographics. We operate principally in the U.S. with limited operations in Canada and Mexico.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Windows & Doors reportable segment offers a broad line of windows and doors at multiple price-points for residential new construction and repair and remodel end markets in the U.S. and Canada. Its main products include vinyl, aluminum, wood-composite and aluminum clad-wood windows and patio doors, as well as steel, wood-composite, and fiberglass entry doors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Siding & Accessories reportable segment offers a broad suite of products and accessories at multiple price-points for the residential new construction and repair and remodel end markets. Its main products include vinyl siding and accessories, cellular polyvinyl chloride trim, vinyl fencing and railing, stone veneer and gutter protection products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Metal Solutions reportable segment designs, engineers, manufactures and distributes extensive lines of metal products for the low-rise commercial construction market under multiple brand names and through a nationwide network of manufacturing plants, distribution centers and retail branches. The Company defines low-rise commercial construction as building applications of up to five stories.

Management monitors the results of its operating segments separately to make decisions about resources and evaluate performance. Management, including the Company's chief operating decision maker, evaluates performance on the basis of segment earnings before interest, income taxes, depreciation and amortization ("Reportable segment adjusted EBITDA").

Corporate operating expenses are not allocated to reportable segments. Corporate and Other consists specifically of corporate operating expenses that are generally not allocated to reportable segments, related-party management fees, and other items that are not assigned or allocated to reportable segments. Any intercompany net sales or expenses are eliminated in consolidation.

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<u>[**Table of Contents**](#i32b10ec0f0874682a9bdcae320fff6bf_7)</u><br>

The following table sets forth reportable segment net sales, reportable segment adjusted EBITDA and a reconciliation to loss before income taxes:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| ***($ Amounts in thousands)*** | **September 27, 2025** | **September 28, 2024** | **September 27, 2025** | **September 28, 2024** |
| Reportable segment net sales: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Windows & Doors | $644647 | $674568 | $1868192 | $1877707 |
| &nbsp;&nbsp;&nbsp;Siding & Accessories | 332412 | 351381 | 898245 | 964197 |
| &nbsp;&nbsp;&nbsp;Metal Solutions | 467120 | 407051 | 1283765 | 1103798 |
| &nbsp;&nbsp;Total reportable segment net sales | 1444179 | 1433000 | 4050202 | 3945702 |
| &nbsp;&nbsp;Intersegment sales | (1391) | (1644) | (4175) | (4357) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total net sales | $1442788 | $1431356 | $4046027 | $3941345 |
| Reportable segment adjusted EBITDA: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Windows & Doors | $50228 | $83044 | $172515 | $227548 |
| &nbsp;&nbsp;&nbsp;Siding & Accessories | 72457 | 77421 | 171679 | 195096 |
| &nbsp;&nbsp;&nbsp;Metal Solutions | 54594 | 17943 | 172658 | 128741 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total reportable segment adjusted EBITDA | 177279 | 178408 | 516852 | 551385 |
| Corporate and Other | (46245) | (54050) | (135401) | (171359) |
| Impairment of goodwill and intangible assets | (372323) | (415491) | (372323) | (415491) |
| Depreciation and amortization | (112287) | (103586) | (339190) | (296441) |
| Interest expense | (123993) | (124120) | (363519) | (325687) |
| Foreign exchange gain (loss) | (3135) | 782 | 605 | (6004) |
| Bargain purchase gain | 47840 |  | 47840 |  |
| Other income, net | 892 | 994 | 2362 | 4550 |
| Loss before income taxes | $(431972) | $(517063) | $(642774) | $(659047) |

---

The following table sets forth net sales to third party customers, disaggregated by reportable segment:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| ***($ Amounts in thousands)*** | **September 27, 2025** | **September 28, 2024** | **September 27, 2025** | **September 28, 2024** |
| Windows & Doors – Principally vinyl windows | $644325 | $674398 | $1867512 | $1877248 |
| Siding & Accessories: |  |  |  |  |
| &nbsp;&nbsp;Vinyl siding | 164690 | 169586 | 440832 | 470209 |
| &nbsp;&nbsp;Metal siding | 100413 | 100529 | 262802 | 268465 |
| &nbsp;&nbsp;Injection molded siding | 14349 | 15953 | 38866 | 42980 |
| &nbsp;&nbsp;Stone | 32967 | 43425 | 95866 | 116830 |
| &nbsp;&nbsp;Other products & services | 18924 | 20414 | 56384 | 61815 |
| &nbsp;&nbsp;Total | 331343 | 349907 | 894750 | 960299 |
| Metal Solutions – Metal building products | 467120 | 407051 | 1283765 | 1103798 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total net sales | $1442788 | $1431356 | $4046027 | $3941345 |

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The following table sets forth other financial data by reportable segment:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| ***($ Amounts in thousands)*** | **September 27, 2025** | **September 28, 2024** | **September 27, 2025** | **September 28, 2024** |
| Depreciation and amortization: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Windows & Doors | $50107 | $47829 | $154305 | $134093 |
| &nbsp;&nbsp;&nbsp;Siding & Accessories | 25574 | 23785 | 76533 | 75738 |
| &nbsp;&nbsp;&nbsp;Metal Solutions | 35288 | 30941 | 104415 | 84089 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization for reportable segments | 110969 | 102555 | 335253 | 293920 |
| &nbsp;&nbsp;&nbsp;Corporate | 1318 | 1031 | 3937 | 2521 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total depreciation and amortization | $112287 | $103586 | $339190 | $296441 |
| Capital expenditures: |  |  |  |  |
| &nbsp;&nbsp;Windows & Doors |  |  | $46126 | $66539 |
| &nbsp;&nbsp;Siding & Accessories |  |  | 23582 | 38946 |
| &nbsp;&nbsp;Metal Solutions |  |  | 33653 | 44022 |
| &nbsp;&nbsp;Capital expenditures for reportable segments |  |  | 103361 | 149507 |
| &nbsp;&nbsp;Corporate |  |  | 5594 | 6313 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total capital expenditures |  |  | $108955 | $155820 |

---

The following table sets forth key expenses disaggregated by reportable segment for the three months ended September 27, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***($ Amounts in thousands)*** | **Windows & Doors** | **Siding & Accessories** | **Metal Solutions** | **Total** |
| Net sales | $644325 | $331343 | $467120 | $1442788 |
| Intersegment sales | 322 | 1069 |  | 1391 |
| Reportable segment net sales | 644647 | 332412 | 467120 | 1444179 |
| Segment cost of sales<sup>(1)</sup> | (532173) | (235033) | (349430) | (1116636) |
| Segment selling, general and administrative expenses<sup>(2)</sup> | (62246) | (24922) | (63096) | (150264) |
| &nbsp;&nbsp;&nbsp;Reportable segment adjusted EBITDA | $50228 | $72457 | $54594 | $177279 |
| Impairment of goodwill and intangible assets |  |  |  | (372323) |
| Depreciation and amortization |  |  |  | (112287) |
| Corporate and Other |  |  |  | (46245) |
| Interest expense |  |  |  | (123993) |
| Bargain purchase gain |  |  |  | 47840 |
| Foreign exchange loss |  |  |  | (3135) |
| Other income, net |  |  |  | 892 |
| Loss before income taxes |  |  |  | $(431972) |

---

(1)Includes hourly and salaried labor for all manufacturing, delivery and related support activities as well as factory overhead, labor benefits, warranty, out-bound freight, utilities, lease and other manufacturing and delivery related-costs.

(2)Includes labor-related costs for the sales, marketing and functional organizations, as well as marketing, selling expenses, bad debt and general administrative expenses. Functional organizations include, among others, information technology, finance and accounting, legal and executive office.

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<u>[**Table of Contents**](#i32b10ec0f0874682a9bdcae320fff6bf_7)</u><br>

The following table sets forth key expenses disaggregated by reportable segment for the three months ended September 28, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***($ Amounts in thousands)*** | **Windows & Doors** | **Siding & Accessories** | **Metal Solutions** | **Total** |
| Net sales | $674398 | $349907 | $407051 | $1431356 |
| Intersegment sales | 170 | 1474 |  | 1644 |
| Reportable segment net sales | 674568 | 351381 | 407051 | 1433000 |
| Segment cost of sales<sup>(1)</sup> | (527784) | (246825) | (331429) | (1106038) |
| Segment selling, general and administrative expenses<sup>(2)</sup> | (63740) | (27135) | (57679) | (148554) |
| &nbsp;&nbsp;&nbsp;Reportable segment adjusted EBITDA | $83044 | $77421 | $17943 | $178408 |
| Impairment of goodwill and intangible assets |  |  |  | (415491) |
| Depreciation and amortization |  |  |  | (103586) |
| Corporate and Other |  |  |  | (54050) |
| Interest expense |  |  |  | (124120) |
| Foreign exchange gain |  |  |  | 782 |
| Other income, net |  |  |  | 994 |
| Loss before income taxes |  |  |  | $(517063) |

---

(1)Includes hourly and salaried labor for all manufacturing, delivery and related support activities as well as factory overhead, labor benefits, warranty, out-bound freight, utilities, lease and other manufacturing and delivery related-costs.

(2)Includes labor-related costs for the sales, marketing and functional organizations as well as marketing, selling expenses, bad debt and general administrative expenses. Functional organizations include, among others, information technology, finance and accounting, legal and executive office.

The following table sets forth key expenses disaggregated by reportable segment for the nine months ended September 27, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***($ Amounts in thousands)*** | **Windows & Doors** | **Siding & Accessories** | **Metal Solutions** | **Total** |
| Net sales | $1867512 | $894750 | $1283765 | $4046027 |
| Intersegment sales | 680 | 3495 |  | 4175 |
| Reportable segment net sales | 1868192 | 898245 | 1283765 | 4050202 |
| Segment cost of sales<sup>(1)</sup> | (1506463) | (647560) | (919234) | (3073257) |
| Segment selling, general and administrative expenses<sup>(2)</sup> | (189214) | (79006) | (191873) | (460093) |
| &nbsp;&nbsp;&nbsp;Reportable segment adjusted EBITDA | $172515 | $171679 | $172658 | $516852 |
| Impairment of goodwill and intangible assets |  |  |  | (372323) |
| Depreciation and amortization |  |  |  | (339190) |
| Corporate and Other |  |  |  | (135401) |
| Interest expense |  |  |  | (363519) |
| Bargain purchase gain |  |  |  | 47840 |
| Foreign exchange gain |  |  |  | 605 |
| Other income, net |  |  |  | 2362 |
| Loss before income taxes |  |  |  | $(642774) |

---

(1)Includes hourly and salaried labor for all manufacturing, delivery and related support activities as well as factory overhead, labor benefits, warranty, out-bound freight, utilities, lease and other manufacturing and delivery related-costs.

(2)Includes labor-related costs for the sales, marketing and functional organizations as well as marketing, selling expenses, bad debt and general administrative expenses. Functional organizations include, among others, information technology, finance and accounting, legal and executive office.

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<u>[**Table of Contents**](#i32b10ec0f0874682a9bdcae320fff6bf_7)</u><br>

The following table sets forth key expenses disaggregated by reportable segment for the nine months ended September 28, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***($ in thousands)*** | **Windows & Doors** | **Siding & Accessories** | **Metal Solutions** | **Total** |
| Net sales | $1877248 | $960299 | $1103798 | $3941345 |
| Intersegment sales | 459 | 3898 |  | 4357 |
| Reportable segment net sales | 1877707 | 964197 | 1103798 | 3945702 |
| Segment cost of sales<sup>(1)</sup> | (1471180) | (685037) | (828099) | (2984316) |
| Segment selling, general and administrative expenses<sup>(2)</sup> | (178979) | (84064) | (146958) | (410001) |
| &nbsp;&nbsp;&nbsp;Reportable segment adjusted EBITDA | $227548 | $195096 | $128741 | $551385 |
| Impairment of goodwill and intangible assets |  |  |  | (415491) |
| Depreciation and amortization |  |  |  | (296441) |
| Corporate and Other |  |  |  | (171359) |
| Interest expense |  |  |  | (325687) |
| Foreign exchange loss |  |  |  | (6004) |
| Other income, net |  |  |  | 4550 |
| Loss before income taxes |  |  |  | $(659047) |

---

(1)Includes hourly and salaried labor for all manufacturing, delivery and related support activities as well as factory overhead, labor benefits, warranty, out-bound freight, utilities, lease and other manufacturing and delivery related-costs.

(2)Includes labor-related costs for the sales, marketing and functional organizations as well as marketing, selling expenses, bad debt and general administrative expenses. Functional organizations include, among others, information technology, finance and accounting, legal and executive office.

The following table sets forth property, plant and equipment, net, and total assets disaggregated by reportable segment:

---

| | | |
|:---|:---|:---|
| ***($ in thousands)*** | **September 27, 2025** | **December 31,<br>2024** |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment, net: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Windows & Doors | $345517 | $377786 |
| &nbsp;&nbsp;&nbsp;&nbsp;Siding & Accessories | 187269 | 193235 |
| &nbsp;&nbsp;&nbsp;&nbsp;Metal Solutions | 501225 | 538725 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment, net by reportable segments | 1034011 | 1109746 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate | 20935 | 17291 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total property, plant and equipment, net | $1054946 | $1127037 |
| &nbsp;&nbsp;&nbsp;Total assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Windows & Doors | $2544172 | $2896080 |
| &nbsp;&nbsp;&nbsp;&nbsp;Siding & Accessories | 1757327 | 1810815 |
| &nbsp;&nbsp;&nbsp;&nbsp;Metal Solutions | 1925425 | 1631139 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets by reportable segment | 6226924 | 6338034 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate | 309626 | 347112 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $6536550 | $6685146 |

---

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**Note 15 — Supplemental Cash Flow Information**

The following table sets forth supplemental cash flow information:

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** |
| ***($ in thousands)*** | **September 27, 2025** | **September 28, 2024** |
| Supplemental cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid, net of interest rate swaps | $317741 | $264879 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid | $690 | $88150 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures included within accounts payable | $2621 | $5323 |

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<u>[**Table of Contents**](#i32b10ec0f0874682a9bdcae320fff6bf_7)</u><br>

**CORNERSTONE BUILDING BRANDS, INC.**

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.**

*The following is management's discussion and analysis of certain significant factors that have affected our consolidated financial condition and results of operations during the periods presented (the "MD&A"). This information should be read in conjunction with the Condensed Consolidated Financial Statements included herein "Item 1. Condensed Consolidated Financial Statements" and the Condensed Consolidated Financial Statements and the Notes thereto and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024* (the "2024 Form 10-K")*.*

**Forward-Looking Statements**

This Quarterly Report on Form 10-Q includes statements concerning our expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not historical facts. These statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed or implied by these statements. In some cases, our forward-looking statements can be identified by the words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "objective," "plan," "potential," "predict," "projection," "should," "will," "target" or other similar words. Our forward-looking statements are based on management's beliefs and assumptions, which are made using information available at the time the statements are made. We caution you that assumptions, beliefs, expectations, intentions and projections about future events may and often do vary materially from actual results. Therefore, we cannot assure you that actual results will not differ materially from those expressed or implied by our forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, these expectations and the related statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those projected. These risks, uncertainties and other factors include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;• Challenging macroeconomic conditions affecting the residential new construction and the repair and remodel end markets and the commercial construction market, including high interest rates;

&nbsp;&nbsp;&nbsp;&nbsp;• Commodity price volatility or limited availability of raw materials, including steel, polyvinyl chloride ("PVC") resin, aluminum, and glass due to supply chain disruptions, including the impact of recently imposed tariffs;

&nbsp;&nbsp;&nbsp;&nbsp;• Increases in the macroeconomic inflationary environment and the impact on demand for our products and services;

&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to identify and develop relationships with a sufficient number of qualified suppliers to mitigate risk in the event a significant supplier experiences a significant production or supply chain interruption, or the supplier experiences quality and/or sourcing issues;

&nbsp;&nbsp;&nbsp;&nbsp;• Seasonality of the business and adverse weather conditions;

&nbsp;&nbsp;&nbsp;&nbsp;• The increasing difficulty for consumers and builders in obtaining credit or financing;

&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to successfully implement operational efficiency initiatives and reduce costs while ensuring superior quality;

&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to successfully achieve price increases to offset cost increases;

&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to compete effectively against competitors;

&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to successfully integrate our acquired businesses and to realize anticipated benefits;

&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to employ, train and retain qualified personnel;

&nbsp;&nbsp;&nbsp;&nbsp;• Increases in labor costs, labor market pressures, potential labor disputes, union organizing activity and work stoppages at our facilities or the facilities of our suppliers;

&nbsp;&nbsp;&nbsp;&nbsp;• Increases in energy costs;

&nbsp;&nbsp;&nbsp;&nbsp;• Increases in freight and transportation costs;

&nbsp;&nbsp;&nbsp;&nbsp;• Volatility in the United States ("U.S.") and international economies and in the credit markets;

&nbsp;&nbsp;&nbsp;&nbsp;• Additional impairments of our goodwill or intangible assets;

&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to successfully develop new products or improve existing products;

&nbsp;&nbsp;&nbsp;&nbsp;• Enforcement and obsolescence of our intellectual property rights;

&nbsp;&nbsp;&nbsp;&nbsp;• Costs related to compliance with, violations of or liabilities under environmental, health and safety laws;

&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to make strategic acquisitions accretive to earnings and dispositions at favorable prices and terms;

&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to fund operations and provide increased working capital necessary to support our strategy and acquisitions using available liquidity;

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&nbsp;&nbsp;&nbsp;&nbsp;• Global climate change, and compliance with new or changed laws or regulations relating to sustainability;

&nbsp;&nbsp;&nbsp;&nbsp;• Breaches of our information system security measures;

&nbsp;&nbsp;&nbsp;&nbsp;• Damage to our computer infrastructure and software systems, as well as issues relating to the incorporation of artificial intelligence solutions into our systems;

&nbsp;&nbsp;&nbsp;&nbsp;• Implementation and necessary maintenance and/or replacement(s) to our enterprise resource planning technologies;

&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to remediate a material weakness in our internal control over financial reporting and maintain an effective system of internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;• Challenges resulting from import and trade restrictions, including recently imposed tariffs by the Trump administration, which may have varying impacts on our business or results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;• Potential personal injury, property damage or product liability claims or other types of litigation;

&nbsp;&nbsp;&nbsp;&nbsp;• Compliance with certain laws related to our international business operations;

&nbsp;&nbsp;&nbsp;&nbsp;• Significant changes in factors and assumptions used to measure certain of our defined benefit plan obligations and the effect of actual investment returns on pension assets;

&nbsp;&nbsp;&nbsp;&nbsp;• Additional costs from new regulations which relate to the utilization or manufacturing of our products or services, including changes in building codes and standards;

&nbsp;&nbsp;&nbsp;&nbsp;• Our controlling stockholder's interests differing from the interests of holders of our indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;• Our substantial indebtedness and our ability to incur substantially more indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;• Limitations that our debt agreements place on our ability to engage in certain business and financial transactions;

&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to obtain financing on acceptable terms;

&nbsp;&nbsp;&nbsp;&nbsp;• Exchange rate fluctuations;

&nbsp;&nbsp;&nbsp;&nbsp;• Downgrades of our credit ratings;

&nbsp;&nbsp;&nbsp;&nbsp;• The effect of increased interest rates on our ability to service our debt; and

&nbsp;&nbsp;&nbsp;&nbsp;• Other risks detailed under the caption "Risk Factors" in this Quarterly Report on Form 10-Q and in Part I, Item 1A in the 2024 Form 10-K and other filings we make with the Securities Exchange Commission.

A forward-looking statement may include a statement of the assumptions or bases underlying the forward-looking statement. We believe that we have chosen these assumptions or bases in good faith and that they are reasonable. However, we caution you that assumed facts or bases almost always vary from actual results and the differences between assumed facts or bases and actual results can be material, depending on the circumstances. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements in this report, including those described under the caption "Risk Factors" in Item 1A in this Quarterly Report on Form 10-Q and in Part I, Item 1A in the 2024 Form 10-K and other filings we make with the Securities and Exchange Commission. We expressly disclaim any obligations to release publicly any updates or revisions to these forward-looking statements to reflect any changes in our expectations unless the securities laws require us to do so.

**Company Overview**

***Our Company***

Cornerstone Building Brands, Inc. ("Cornerstone Building Brands", together with its subsidiaries, unless the context requires otherwise, the "Company," "we," "us" or "our") is a holding company incorporated in the State of Delaware. We are a leading manufacturer of exterior building products in North America by sales and serve residential and commercial customers across both the new construction and repair and remodel markets.

Our operations are organized as three reportable segments, which we have renamed as follows: Windows & Doors (formerly "Aperture Solutions"), Siding & Accessories (formerly "Surface Solutions") and Metal Solutions (formerly "Shelter Solutions"). We renamed our reportable segments to better reflect our portfolio and services and to provide greater clarity to investors and stakeholders, including our customers. There was no change in the composition of our reportable segments. We have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• One of the broadest product offerings in our industry. Our total addressable market is diverse and expands across multiple geographies, end markets, channels and customers providing us with significant benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A leading market position in various North American markets we serve, including, among others, vinyl windows, vinyl siding, stone veneer installations, metal accessories, metal roofing and wall systems and engineered metal building systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An extensive coast-to-coast network of manufacturing, distribution and branch office facilities throughout North America.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A vertically integrated manufacturing process that enables us to deliver better service and positions us to be a cost-advantaged manufacturer.

We are mindful of the harmful effects of global climate change, the contributions to climate change from manufacturing operations and the end-use of building construction products. We have made and continue to make progress on our work related to sustainability matters.

***Tariffs***

We are navigating through several external factors that create uncertainty and volatility in our operating environment, including, but not limited to, new tariffs and evolving trade policy. These rapidly changing policies and dynamics pose a risk to our supply chain and cost structure. Any new tariffs and/or trade restrictions that may be implemented could result in reduced overall economic activity and increased costs in operating our business, which, if unmitigated, could have a material adverse effect on our business, financial condition, and results of operations.

**Results of Operations**

The following table represents key results of operations on a consolidated basis for the interim periods indicated and the changes between periods:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| ***(Amounts in thousands)*** | **September 27, 2025** | **September 28, 2024** | **September 27, 2025** | **September 28, 2024** |
| Net sales | $1442788 | $1431356 | $4046027 | $3941345 |
| Gross profit | 274306 | 276562 | 823156 | 827249 |
| &nbsp;&nbsp;&nbsp;% of net sales | 19.0% | 19.3% | 20.3% | 21.0% |
| Selling, general and administrative expenses | 255559 | 255790 | 780895 | 743664 |
| &nbsp;&nbsp;% of net sales | 17.7% | 17.9% | 19.3% | 18.9% |
| Impairment of goodwill and intangible assets | 372323 | 415491 | 372323 | 415491 |
| &nbsp;&nbsp;Loss from operations | (353576) | (394719) | (330062) | (331906) |
| % of net sales | (24.5)% | (27.6)% | (8.2)% | (8.4)% |
| Interest expense | (123993) | (124120) | (363519) | (325687) |
| Bargain purchase gain | 47840 |  | 47840 |  |
| Foreign exchange gain (loss) | (3135) | 782 | 605 | (6004) |
| Other income, net | 892 | 994 | 2362 | 4550 |
| &nbsp;&nbsp;Loss before income taxes | (431972) | (517063) | (642774) | (659047) |
| Income tax (benefit) | (75991) | (40029) | (116201) | (56219) |
| &nbsp;&nbsp;Net loss | $(355981) | $(477034) | $(526573) | $(602828) |
| Non-GAAP financial measure – Adjusted EBITDA\* | $146031 | $147049 | $416380 | $451847 |
| &nbsp;&nbsp;% of net sales | 10.1% | 10.3% | 10.3% | 11.5% |
| \* Refer to Non-GAAP Financial Measures for further discussion. | \* Refer to Non-GAAP Financial Measures for further discussion. |  |  |  |

---

*Net sales* increased $11.4 million, or 0.8%, for the three months ended September 27, 2025, compared to the comparable prior year period, mainly due to the strategic acquisitions of Mueller Supply Company, Inc. ("Mueller") in July 2024 and Metal Sales Manufacturing Corporation ("Metal Sales") in September 2025, partially offset by lower volumes across the Windows & Doors and Siding & Accessories reportable segments due to constrained market conditions.

*Net sales* increased $104.7 million, or 2.7%, for the nine months ended September 27, 2025 compared to the comparable prior year period, mainly due to the strategic acquisitions of Harvey Building Products Corp. ("Harvey") in April 2024, Mueller, and Metal Sales, partially offset by lower volumes across all reportable segments due to constrained market conditions.

*Gross profit as a percentage of net sales* was 19.0% for the three months ended September 27, 2025, compared to 19.3% for the comparable prior year period, and 20.3% for the nine months ended September 27, 2025 compared to 21.0% for the comparable prior year period. The decrease in margin was primarily driven by lower average selling price, higher manufacturing input costs due to inflation and reduced operating leverage resulting from lower sales volume.

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*Selling, general and administrative expenses* decreased $0.2 million, for the three months ended September 27, 2025, compared to the comparable prior year period, due to a decrease in non-personnel costs driven by cost management efforts across all reportable segments and a reduction in sales and incentive compensation related costs due to reduced volumes, excluding acquisition impacts.

*Selling, general and administrative expenses* increased $37.2 million for the nine months ended September 27, 2025 compared to the comparable prior year period. The Company incurred higher employee related expenses and depreciation and amortization during the current year primarily due to the acquisitions of Harvey and Mueller during 2024. These increases are partially offset by a reduction in sales and incentive compensation related costs due to reduced volumes, excluding acquisition impacts.

*Impairment of goodwill and intangible assets* consists of impairment charges for goodwill of $372.3 million related to our Windows & Doors–U.S. reporting unit for the three and nine months ended September 27, 2025. During the three and nine months ended September 28, 2024, impairment charges for goodwill and intangible assets of $415.5 million primarily related to our Siding & Accessories–U.S. reporting unit, in addition to our Siding & Accessories–Stone and Windows & Doors–U.S reporting units.

*Interest expense (benefit)* decreased $0.1 million for the three months ended September 27, 2025, compared to the comparable prior year period and increased $37.8 million for the nine months ended September 27, 2025 compared to the comparable prior period.

*The following table sets f*orth the components of interest expense:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| ***(Amounts in thousands)*** | **September 27, 2025** | **September 28, 2024** | **September 27, 2025** | **September 28, 2024** |
| Interest on outstanding borrowings | $105274 | $109861 | $308875 | $288959 |
| Cash impact of interest rate swaps | (8856) | (12619) | (26502) | (38630) |
| Amortization of interest rate swap fair value<sup>(1)</sup> | 2998 | 2995 | 8853 | 8985 |
| Amortization of debt discount, debt issuance costs and purchase accounting fair value adjustment<sup>(1)</sup> | 24618 | 23265 | 71599 | 65644 |
| Other | (41) | 618 | 694 | 729 |
| Total interest expense | $123993 | $124120 | $363519 | $325687 |

---

(1)The fair value adjustments were made in connection with the Merger in July 2022.

*Bargain purchase* gain of $47.8 million represents the excess of the fair value of the net assets acquired in our acquisition of Metal Sales over the consideration transferred to the seller, and largely was attributable to the fair value of the real property acquired. The Company believes the bargain purchase gain resulted from an opportunistic transaction.

*Foreign exchange gain (loss) was* $3.1 million of losses for the three months ended September 27, 2025, compared to $0.8 million of gains for the three months ended September 28, 2024 and $0.6 million of gains for the nine months ended September 27, 2025 compared to $6.0 million of losses for the nine months ended September 28, 2024. The changes period over period are attributable to foreign exchange rate changes on intercompany loans based in Canadian currency.

*Other income, ne*t, decreased $0.1 million for the three months ended September 27, 2025, compared to the comparable prior year period, and decreased $2.2 million for the nine months ended September 27, 2025, compared to the comparable prior period. These fluctuations are mainly due to changes in interest income earned on our cash and cash equivalents year over year.

*Income tax benefit* increased $36.0 million for the three-month period ended September 27, 2025 compared to the comparable prior period and increased $60.0 million for the nine months ended September 27, 2025 compared to the comparable prior period. The change was mainly due to a decrease in pre-tax book losses during the nine months ended September 27, 2025 compared to the nine months ended September 28, 2024, offset by the bargain purchase gain in 2025, and the tax impacts of the current period goodwill impairment.

The One Big Beautiful Bill Act ("OBBBA") was enacted on July 4, 2025. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act of 2017, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation, among other tax changes. Many of the tax provisions of the OBBBA are designed to accelerate tax deductions, which we expect will lead to lower cash tax payments for 2025. The Company continues to evaluate the impact on its overall financial position.

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**Reportable Segment Results of Operations**

The following table sets forth the continuing results of operations for our reportable segments:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| ***(Amounts in thousands)*** | **September 27, 2025** | **September 28, 2024** | **September 27, 2025** | **September 28, 2024** |
| Reportable segment net sales: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Windows & Doors | $644647 | $674568 | $1868192 | $1877707 |
| &nbsp;&nbsp;&nbsp;Siding & Accessories | 332412 | 351381 | 898245 | 964197 |
| &nbsp;&nbsp;&nbsp;Metal Solutions | 467120 | 407051 | 1283765 | 1103798 |
| &nbsp;&nbsp;Intersegment net sales | (1391) | (1644) | (4175) | (4357) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total net sales | $1442788 | $1431356 | $4046027 | $3941345 |
| Net sales, third party customers: |  |  |  |  |
| &nbsp;&nbsp;Windows & Doors | $644325 | $674398 | $1867512 | $1877248 |
| &nbsp;&nbsp;Siding & Accessories | 331343 | 349907 | 894750 | 960299 |
| &nbsp;&nbsp;Metal Solutions | 467120 | 407051 | 1283765 | 1103798 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total net sales | $1442788 | $1431356 | $4046027 | $3941345 |
| Reportable segment adjusted EBITDA\* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Windows & Doors | $50228 | $83044 | $172515 | $227548 |
| &nbsp;&nbsp;&nbsp;Siding & Accessories | 72457 | 77421 | 171679 | 195096 |
| &nbsp;&nbsp;&nbsp;Metal Solutions | 54594 | 17943 | 172658 | 128741 |
| Corporate and Other | (46245) | (54050) | (135401) | (171359) |
| Impairment of goodwill and intangible assets | (372323) | (415491) | (372323) | (415491) |
| Depreciation and amortization | (112287) | (103586) | (339190) | (296441) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income (loss) from operations | $(353576) | $(394719) | $(330062) | $(331906) |

---

\* Refer to Non-GAAP Financial Measures for further discussion.

***Windows & Doors***

The following table sets forth the continuing results of operations for the Windows & Doors reportable segment:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| ***(Amounts in thousands)*** | **September 27, 2025** | **September 28, 2024** | **September 27, 2025** | **September 28, 2024** |
| Reportable segment net sales: | $644647 | $674568 | $1868192 | $1877707 |
| Net sales, third party customers: | $644325 | $674398 | $1867512 | $1877248 |
| Reportable segment adjusted EBITDA\* | $50228 | $83044 | $172515 | $227548 |
| &nbsp;&nbsp;&nbsp;% of net sales | 7.8% | 12.3% | 9.2% | 12.1% |
| Depreciation and amortization | $50107 | $47829 | $154305 | $134093 |

---

\* Refer to Non-GAAP Financial Measures for further discussion.

*Reportable segment net sales* for the three months ended September 27, 2025 decreased $29.9 million, or 4.4%, and for the nine months ended September 27, 2025 decreased $9.5 million, or 0.5% mainly driven by lower volumes and unfavorable price net of inflation, partially offset by the strategic acquisition of Harvey in April 2024.

*Reportable segment adjusted EBITDA* for the three months ended September 27, 2025 decreased $32.8 million and for the nine months ended September 27, 2025 decreased $55.0 million, mainly driven by lower volumes and an unfavorable price net of inflation, partially offset by favorable product mix, manufacturing net efficiencies and the strategic acquisition of Harvey in April 2024.

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***Siding & Accessories***

The following table sets forth the continuing results of operations for the Siding & Accessories reportable segment:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| ***(Amounts in thousands)*** | **September 27, 2025** | **September 28, 2024** | **September 27, 2025** | **September 28, 2024** |
| Reportable segment net sales: | $332412 | $351381 | $898245 | $964197 |
| Net sales, third party customers: | $331343 | $349907 | $894750 | $960299 |
| Reportable segment adjusted EBITDA\* | $72457 | $77421 | $171679 | $195096 |
| &nbsp;&nbsp;&nbsp;% of net sales | 21.9% | 22.1% | 19.2% | 20.3% |
| Depreciation and amortization | $25574 | $23785 | $76533 | $75738 |

---

\* Refer to Non-GAAP Financial Measures for further discussion.

*Reportable segment net sales* for the three months ended September 27, 2025 decreased $19.0 million, or 5.4%, and for the nine months ended September 27, 2025 decreased $66.0 million or 6.8%, primarily driven by lower volumes, partially offset by favorable product mix.

*Reportable segment adjusted EBITDA* for the three months ended September 27, 2025 decreased $5.0 million, and for the nine months ended September 27, 2025 decreased $23.4 million, mainly driven by lower volumes and material inflation, partially offset by manufacturing net efficiencies and decreased selling, general and administrative expenses.

***Metal Solutions***

The following table sets forth the continuing results of operations for the Metal Solutions reportable segment:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| ***(Amounts in thousands)*** | **September 27, 2025** | **September 28, 2024** | **September 27, 2025** | **September 28, 2024** |
| Reportable segment net sales: | $467120 | $407051 | $1283765 | $1103798 |
| Net sales, third party customers: | $467120 | $407051 | $1283765 | $1103798 |
| Reportable segment adjusted EBITDA\* | $54594 | $17943 | $172658 | $128741 |
| &nbsp;&nbsp;&nbsp;% of net sales | 11.7% | 4.4% | 13.4% | 11.7% |
| Depreciation and amortization | $35288 | $30941 | $104415 | $84089 |

---

\* Refer to Non-GAAP Financial Measures for further discussion.

*Reportable segment sales* for the three months ended September 27, 2025 increased $60.1 million, or 14.8%, and for the nine months ended September 27, 2025 increased $180.0 million, or 16.3%, mainly driven by the strategic acquisitions of Mueller in July 2024 and Metal Sales in September 2025, partially offset by lower average selling prices.

*Reportable segment adjusted EBITDA* for the three months ended September 27, 2025 increased $36.7 million, and for the nine months ended September 27, 2025 increased $43.9 million, mainly due to the acquisitions of Mueller in July 2024 and Metal Sales in September 2025 as well as manufacturing net efficiencies partially offset by unfavorable price net of inflation.

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***Corporate and Other***

The following table sets forth the continuing operations for Corporate:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| ***(Amounts in thousands)*** | **September 27, 2025** | **September 28, 2024** | **September 27, 2025** | **September 28, 2024** |
| Corporate costs | $31248 | $31359 | $100472 | $99538 |
| Long-term incentive plan compensation <sup>(1)</sup> | 2720 | 462 | 1703 | 15885 |
| Strategic development and acquisition related costs <sup>(2)</sup> | 1572 | 7986 | 9950 | 21292 |
| Amortization of acquisition related step-up adjustments <sup>(3)</sup> | 1740 | 10769 | 5343 | 11949 |
| Facility closure charges and employee separation <sup>(4)</sup> | 947 | 2625 | 2193 | 5382 |
| Other<sup>(5)</sup> | 8018 | 849 | 15740 | 17313 |
| Total Corporate and Other | $46245 | $54050 | $135401 | $171359 |

---

(1)Represents charges related to the Company's equity-based compensation plans, including the effects of employee terminations.

(2)Costs related to strategic projects, acquisitions and merger activity.

(3)Costs associated with non-cash purchase accounting valuations for lease right-of-use assets and inventory.

(4)Represents charges related to the Company's manufacturing footprint and certain employee separation costs.

(5)Represents charges related to legal fees and settlements, a fair value adjustment related to contingent consideration on the MAC Metal acquisition and non-recurring costs associated with replacing our Chief Executive Officer during the current year.

*Corporate costs* decreased $0.1 million for the three months ended September 27, 2025, compared to the comparable prior period mainly due to lower non-personnel related costs during the period.

*Corporate costs* increased $0.9 million for the nine months ended September 27, 2025, mainly due to an increase in Company-wide shared service expenses allocated to the reportable segments.

***Depreciation and Amortization***

The following table sets forth depreciation and amortization:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| ***(Amounts in thousands)*** | **September 27, 2025** | **September 28, 2024** | **September 27, 2025** | **September 28, 2024** |
| Depreciation: |  |  |  |  |
| &nbsp;&nbsp;Cost of sales | $50522 | $37933 | $146593 | $119945 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | 15533 | 10468 | 39668 | 25112 |
| Total depreciation | 66055 | 48401 | 186261 | 145057 |
| &nbsp;&nbsp;Amortization — Selling, general and administrative expenses | 46232 | 55185 | 152929 | 151384 |
| Total depreciation and amortization | $112287 | $103586 | $339190 | $296441 |

---

Depreciation and amortization increased $8.7 million for the three months ended September 27, 2025 and increased $42.7 million for the nine months ended September 27, 2025, mainly due to the acquisitions of Harvey in April 2024, Mueller in July 2024 and Metal Sales during September 2025.

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**Liquidity and Capital Resources**

Our main liquidity and capital resource needs are payments to service our debt, ongoing operations and working capital requirements, capital expenditures and the cost of acquisitions. Our primary source of liquidity is cash generated from our continuing operations, and borrowings under our credit facilities. We believe that funds provided by these sources will be adequate to meet our liquidity and capital resource needs for at least the next 12 months under current operating conditions.

We may from time to time take steps to reduce our debt. These actions may include repurchases or opportunistic refinancing of debt. The amount of debt, if any, that may be repurchased or refinanced will depend on market conditions, trading levels of our debt, our cash position, compliance with debt covenants and other considerations. Our affiliates may also purchase our debt from time to time, through open market purchases or other transactions. In such cases, our debt may not be retired, in which case we would continue to pay interest in accordance with the terms of such debt and we would continue to reflect the debt as outstanding in our Condensed Consolidated Balance Sheets.

The following table sets forth our total net liquidity position as of September 27, 2025:

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| | |
|:---|:---|
| ***(Amounts in thousands)*** | **Amount** |
| Cash and cash equivalents | $181936 |
| Revolving credit facilities: |  |
| &nbsp;&nbsp;Asset-based lending facility<sup>(1)(2)</sup> | 850000 |
| &nbsp;&nbsp;Cash flow revolving facility | 92000 |
| &nbsp;&nbsp;First-in-last-out tranche asset-based lending facility | 95000 |
| Total revolving credit facilities | 1037000 |
| Less: |  |
| &nbsp;&nbsp;Debt issued under the facilities | 555000 |
| &nbsp;&nbsp;Letters of credit outstanding and priority payables | 68225 |
| Net credit facility | 413775 |
| Net liquidity | $595711 |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;Borrowing availability under the ABL Facilities is determined based on specified percentages of the value of eligible inventory, accounts receivable, less certain allowances and subject to certain other adjustments as set forth in the ABL Credit Agreement. Availability is also reduced by issuance of letters of credit.

(2)&nbsp;&nbsp;&nbsp;&nbsp;In October 2025, we repaid $25.0 million of our outstanding borrowings under our asset-based lending facility.

***Cash Flows***

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| | | |
|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** |
| ***(Amounts in thousands)*** | **September 27, 2025** | **September 28, 2024** |
| Net cash flows used in operating activities | $(116265) | $(177562) |
| Net cash flows used in investing activities | $(293302) | $(1080565) |
| Net cash flows from financing activities | $431512 | $946540 |

---

***Cash Flows Used in Operating Activities***

Net cash used in operating activities was $(116.3) million for the nine months ended September 27, 2025, a decrease from the $(177.6) million used in operations in the prior year. The decrease is due to lower income taxes paid, offset by lower cash-based results from operations.

***Cash Flows Used in Investing Activities***

Net cash used in investing activities was $(293.3) million for the nine months ended September 27, 2025 compared to $(1,080.6) million used in investing activities for the nine months ended September 28, 2024. The $787.3 million decrease is driven by the acquisitions of Harvey and Mueller during the prior year partially offset by the acquisitions of Metal Sales and Cold Rolled Steel during the current year and reduced spending on capital expenditures during the current year compared to the prior year.

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***Cash Flows From Financing Activities***

Our main uses of cash for financing activities include activity to repurchase and make payments on our long-term debt and distributions to our direct parent Camelot Return Intermediate Holdings, LLC, ("Camelot Parent"). Our main sources of cash from financing activities include the proceeds from issuances of debt.

Net cash from financing activities was $431.5 million for the nine months ended September 27, 2025 compared to $946.5 million from financing activities for the nine months ended September 28, 2024. The decrease of $515.0 million in net cash provided is driven by a decrease of $502.5 million in net borrowings from our term loan facility in the current year, $500.0 million in long-term borrowings through the issuance of the 9.500% Senior Secured Notes during the prior year and a payment of contingent consideration of $11.5 million made during the nine months ended September 27, 2025 as part of the acquisition of MAC Metal, partially offset by an increase of $255.0 million in net borrowings under our revolving credit facilities in the current year and a dividend payment of $231.6 million made to Camelot Parent during the prior year.

**Contingent Liabilities and Commitments**

***Leases***

We have leases for certain manufacturing, warehouse, distribution locations, offices, vehicles and equipment. As of September 27, 2025 the Company had total future lease payments of $648.5 million, with $94.8 million payable within 12 months.

***Debt***

We have certain debt instruments outstanding. As of September 27, 2025 the Company had total future payments of $5.4 billion, with $42.5 million payable within 12 months. See Note 7 in the Notes to the Condensed Consolidated Financial Statements for additional information.

**Non-GAAP Financial Measures**

We use several measures derived from consolidated financial information, but not presented in our Condensed Consolidated Financial Statements prepared in accordance with accounting principles generally accepted in the U.S ("U.S. GAAP"). These measures are considered non-GAAP financial measures. Specifically, we refer to adjusted EBITDA in this report, which is a non-GAAP financial measure. Our non-GAAP financial measure is not intended to replace the presentation of the comparable measure under U.S. GAAP. However, we believe the presentation of the non-GAAP financial measure, when considered together with the comparable U.S. GAAP financial measure, along with a reconciliation to its respective U.S. GAAP financial measure, assists investors in understanding the factors and trends affecting our underlying business that could not be obtained absent these disclosures. Additionally, we believe that the presentation of our non-GAAP financial measure enables investors to evaluate trends in the business excluding certain items which are not entirely a result of our base operations.

Furthermore, the presentation of this non-GAAP financial measure supplements other metrics we use to internally evaluate our business and facilitates the comparison of past and present operations. The non-GAAP financial measure we use may differ from non-GAAP financial measures used by other companies and other companies may not define non-GAAP financial measures we use in the same way.

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***Reconciliation of Net Loss to Adjusted EBITDA***

The following table presents the reconciliation of net loss to Adjusted EBITDA:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| ***(Amounts in thousands)*** | **September 27, 2025** | **September 28, 2024** | **September 27, 2025** | **September 28, 2024** |
| Net loss | $(355981) | $(477034) | $(526573) | $(602828) |
| &nbsp;&nbsp;Interest expense | 123993 | 124120 | 363519 | 325687 |
| &nbsp;&nbsp;Bargain purchase gain | (47840) |  | (47840) |  |
| &nbsp;&nbsp;Foreign exchange (gain) loss | 3135 | (782) | (605) | 6004 |
| &nbsp;&nbsp;Other income, net | (892) | (994) | (2362) | (4550) |
| &nbsp;&nbsp;Income tax (benefit) | (75991) | (40029) | (116201) | (56219) |
| Loss from operations | (353576) | (394719) | (330062) | (331906) |
| &nbsp;&nbsp;Depreciation and amortization | 112287 | 103586 | 339190 | 296441 |
| &nbsp;&nbsp;Impairment loss on goodwill and intangible assets | 372323 | 415491 | 372323 | 415491 |
| &nbsp;&nbsp;Long-term incentive plan compensation<sup>(1)</sup> | 2720 | 462 | 1703 | 15885 |
| &nbsp;&nbsp;Strategic development and acquisition related costs <sup>(2)</sup> | 1572 | 7986 | 9950 | 21292 |
| &nbsp;&nbsp;Amortization of acquisition related step-up adjustments<sup>(3)</sup> | 1740 | 10769 | 5343 | 11949 |
| &nbsp;&nbsp;Facility closure charges and employee separation<sup>(4)</sup> | 947 | 2625 | 2193 | 5382 |
| &nbsp;&nbsp;Other<sup>(5)</sup> | 8018 | 849 | 15740 | 17313 |
| Adjusted EBITDA | $146031 | $147049 | $416380 | $451847 |

---

(1)Represents charges related to the Company's equity-based compensation plans.

(2)Costs related to strategic projects, acquisitions and merger activity.

(3)Costs associated with non-cash purchase accounting valuations for lease right-of-use assets and inventory.

(4)Represents charges related to the Company's manufacturing footprint and certain employee separation costs.

(5)Represents charges related to legal fees and settlements, a fair value adjustment related to contingent consideration on the MAC Metal acquisition and non-recurring costs associated with replacing our Chief Executive Officer during the current year.

See Part I, Item 1, "Condensed Consolidated Financial Statements", Note 14 included herein, for the reconciliation of reportable segment adjusted EBITDA to loss before income taxes. Reportable segment adjusted EBITDA is the only measure of segment profit used by our chief operating decision maker.

**Critical Accounting Estimates**

There have been no material changes in our critical accounting policies and estimates during the nine months ended September 27, 2025. Refer to the 2024 Form 10-K for a description of the Company's critical accounting estimates.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk.**

There have been no significant changes in our exposure to market risk during the nine months ended September 27, 2025. Refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2024 for a description of the Company's market risks.

**Item 4. Controls and Procedures.**

***Evaluation of Disclosure Controls and Procedures***

Our management, under the supervision and participation of our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), evaluated the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as of September 27, 2025. Based on the evaluation of our disclosure controls and procedures, our CEO and CFO concluded that, as of September 27, 2025, our disclosure controls and procedures were not effective due to the material weakness in our internal control over financial reporting as described below.

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Notwithstanding the material weakness in our internal control over financial reporting, management has concluded that the unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q fairly present, in all material respects, our financial position, results of operations and cash flows for the periods presented in conformity with U.S. GAAP.

***Material Weakness in Internal Control over Financial Reporting***

A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis.

***Details on Previously Reported Material Weakness***

In our Form 10-Q for the period ended September 28, 2024, management identified a material weakness in our internal control over financial reporting that arose from the ineffective application of the software development life cycle ("SDLC") information technology general control. Specifically, the Company determined that the assigned team members lacked the requisite knowledge and experience to develop functional requirements, configure the system, and complete user acceptance tests sufficient to fully test the enterprise resource planning system prior to going live.

***Remediation Efforts to Address the Material Weakness***

Management has evaluated the deficiency described above and developed a remediation plan designed to strengthen our SDLC processes across the organization. The remediation plan includes: (i) updating and enhancing the SDLC control framework to guide future implementations, (ii) updating and enhancing the SDLC policy document to outline processes and governance requirements, (iii) conducting targeted training to reinforce policy updates and foster awareness, and (iv) applying the policy and control enhancements to existing and ongoing projects. The material weakness will not be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are designed and operating effectively. The remediation plan is subject to ongoing management review, as well as oversight by the Audit Committee of our Board of Directors.

***Changes in Internal Control over Financial Reporting***

Except for the material weakness identified by management and described above, there were no other changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the period ended September 27, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**CORNERSTONE BUILDING BRANDS, INC.**

**PART II — OTHER INFORMATION**

**Item 1. Legal Proceeding.**

See Part I, Item 1, "Condensed Consolidated Financial Statements", Note 13 — *Commitments and Contingencies*, which is incorporated herein by reference.

**Item 1A. Risk Factors.**

In addition to the information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed under "Risk Factors" in Part I, Item 1A of our Annual Report on <u>[Form 10-K](https://www.sec.gov/Archives/edgar/data/883902/000088390225000004/cnr-20241231.htm)</u> for the fiscal year ended December 31, 2024 (the "2024 Form 10-K"). The risks disclosed in the 2024 Form 10-K, and information provided elsewhere in this report, could materially affect our business, financial condition or results of operations. Additional risks and uncertainties not currently known, or that we currently deem to be immaterial, may materially adversely affect our business, financial condition or results of operations. We believe there have been no other material changes in our risk factors from those disclosed in the 2024 Form 10-K.

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<u>[**Table of Contents**](#i32b10ec0f0874682a9bdcae320fff6bf_7)</u><br>

**Item 6. Exhibits.**

**Index to Exhibits**

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| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| \*†10.1 | <u>[Employment Agreement between Cornerstone Building Brands, Inc. and Gunner Smith, dated July 15, 2025](a20250927exhibit10_1.htm)</u> |
| \*31.1 | <u>[Rule 13a-14(a)/15d-14(a) Certifications (Section 302 of the Sarbanes-Oxley Act of 2002)](a20250927exhibit31_1.htm)</u> |
| \*31.2 | <u>[Rule 13a-14(a)/15d-14(a) Certifications (Section 302 of the Sarbanes-Oxley Act of 2002)](a20250927exhibit31_2.htm)</u> |
| \*\*32.1 | <u>[Certifications pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code (Section 906 of the Sarbanes-Oxley Act of 2002)](a20250927exhibit32_1.htm)</u> |
| \*\*32.2 | <u>[Certifications pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code (Section 906 of the Sarbanes-Oxley Act of 2002)](a20250927exhibit32_2.htm)</u> |
| \*101.INS | Inline XBRL Instance Document |
| \*101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| \*101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| \*101.DEF | Inline XBRL Taxonomy Definition Linkbase Document |
| \*101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| \*101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |

---

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| | |
|:---|:---|
| \* | Filed herewith |
| \*\* | Furnished herewith |
| † | Management contracts or compensatory plans or arrangements |

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<u>[**Table of Contents**](#i32b10ec0f0874682a9bdcae320fff6bf_7)</u><br>

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | | |
|:---|:---|:---|
| | CORNERSTONE BUILDING BRANDS, INC. | CORNERSTONE BUILDING BRANDS, INC. |
| Date: November 7, 2025 | By: | /s/ Jeffrey S. Lee |
|  |  | Jeffrey S. Lee |
|  |  | Executive Vice President and Chief Financial Officer |
| Date: November 7, 2025 | By: | /s/ Tina Beskid |
|  |  | Tina Beskid |
|  |  | Senior Vice President and Chief Accounting Officer |

---

## Exhibit 10.1

**CONFIDENTIAL**

**Exhibit 10.1**

**EMPLOYMENT AGREEMENT**

THIS EMPLOYMENT AGREEMENT (this "**Agreement**") is entered into as of July 15, 2025, by and between Cornerstone Building Brands, Inc., a Delaware corporation (the "**Company**"), and Gunner Smith ("**Employee**"). The Company and Employee are sometimes hereinafter collectively referred to as the "**Parties**."

**BACKGROUND**

**Whereas,** the Company hires and retains in its employment such personnel as are required by the Company and its other Affiliates, and makes its employees so retained available to provide services to the Company and its Affiliates.

**Whereas,** the Company and Employee intend to evidence their mutual agreement that, effective as of August 11, 2025 (the "**Commencement Date**"), Employee shall commence providing services as Chief Executive Officer of the Company, and as such the Company and Employee have agreed to reflect the terms and conditions of the employment of Employee by the Company, and the duties and responsibilities of Employee, on the one hand, and of the Company, on the other hand, to each other.

**Whereas,** the Company and Employee also intend hereby to evidence their mutual agreement that, not later than the Commencement Date (and in any event effective as of the Commencement Date), Employee shall be appointed to the board of directors of the Company (the "**Board**").

**Whereas,** capitalized terms not defined in the body of this Agreement have the meanings set forth on the attached Appendix A.

**AGREEMENT AMONG PARTIES**

In consideration of the foregoing and of the mutual covenants and agreements set forth in this Agreement, and subject to the terms and conditions set forth herein, the Parties agree as follows:

1.**Employment.** During the term of this Agreement, the Company hereby agrees to employ Employee, and Employee hereby agrees to remain in the employ of the Company, pursuant to the terms and conditions set forth herein.

2.**Duties and Authority.** During the term of this Agreement, Employee shall serve as the Chief Executive Officer of the Company, with those authorities, duties and responsibilities customary to that position and such other authorities, duties and responsibilities as the Board may reasonably assign Employee from time to time commensurate with Employee's position as Chief Executive Officer of the Company. Employee shall use Employee's best efforts, including the highest standards of professional competence and integrity, and shall devote substantially all of Employee's

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business time and effort in and to Employee's employment hereunder, and shall not engage in any other business activity which would conflict with the rendition of Employee's services hereunder, except that Employee may hold directorships or related positions in charitable, educational, not-for-profit or up to one for-profit organization to the extent expressly approved by the Board, and make passive investments, which do not unreasonably interfere with Employee's day-to-day performance of Employee's responsibilities to the Company (and with Employee's current position on the board of directors of Howmet Aerospace hereby approved). As soon as reasonably practicable following the date of this Agreement, Employee shall be appointed to the Board.

3.**Term.** The term of, and the terms and conditions of Employee's employment under, this Agreement shall commence as of the Commencement Date and shall continue until Employee's employment hereunder is terminated as described below. The period of time from the Commencement Date until this Agreement has been terminated in accordance with Section 5 is hereafter referred to as "the term hereof" or "the term of this Agreement."

4.**Compensation.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Base Salary. The Company shall pay Employee a base salary in the amount of not less than $1,050,000.00 per year during the term hereof, payable in accordance with the Company's normal payroll procedures. The salary of Employee will be reviewed at least once annually by the Company and/or, to the extent required, the Board or the Compensation Committee of the Board (the "**Compensation Committee**"). Any salary adjustment of Employee shall be solely within the discretion of the Board or the Compensation Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Annual Bonus. During the term of this Agreement, Employee shall have a target annual bonus opportunity equal to 125% of Employee's base salary at the highest annualized rate in effect during the year preceding payment of such bonus (the "**Target Bonus**"); *provided* that the annual bonus paid to Employee with respect to 2025 shall be equal to (i) $317,187.50, *plus* (ii) an amount based on the same performance metrics as applicable to the other senior executive officers of the Company in 2025, prorated for the period of Employee's service to the Company and its Affiliates in 2025; *provided, further*, that Employee's annual bonus for 2025, in the aggregate, shall be no less than $775,000 irrespective of the actual achievement of any applicable performance metrics. During the term of this Agreement, Employee shall participate under the Company's currently existing cash annual incentive plan as may be amended, restated or replaced from time to time (the "**Bonus Plan**") or, if the Bonus Plan is amended, replaced or superseded, under any amended, replacement or successor bonus program adopted for senior executives of the Company and its Affiliates. Bonuses, if any, paid to Employee pursuant to the Bonus Plan shall be paid after the end of each fiscal year of the Company at the same time as bonuses are paid to other participants, but no later than March 15 of the following calendar year. Employee understands that bonuses cannot be earned under the Bonus Plan except as specifically set forth therein based on the level of participation specified by the Board or the Compensation Committee in its discretion, but acknowledging the target annual bonus opportunity set forth herein, and, if the employment of a participant terminates for any reason prior to certain dates specified in

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the Bonus Plan, no bonus shall be payable thereunder except as expressly provided in this Section 4 and in Section 5 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Long-Term Incentives. As soon as administratively practicable following the Commencement Date, Employee shall be granted an award of 300,000 Class B Units of Camelot Return Ultimate, LP (the "**Partnership**"), pursuant to, and subject to the terms and conditions of, the Partnership's 2022 Equity Incentive Plan, as amended, or any successor plan thereto (the "**Equity Plan**"), the Partnership's Amended and Restated Agreement of Limited Partnership, as amended (the "**LP Agreement**"), and such other terms and conditions set forth in the applicable award agreement, which award agreement shall be consistent with the terms and conditions provided to the Company's senior executive officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Make-Whole Bonus. To compensate Employee for unvested long-term incentives granted to Employee by Employee's prior employer but forfeited by reason of Employee's commencement of services with the Company and its Affiliates, on the first payroll date following the Commencement Date, the Company shall pay Employee a cash make-whole bonus equal to $1,450,000. Employee will be required to repay this bonus if Employee's employment with the Company is terminated either by the Company for Cause or by Employee without Good Reason, in each case, written notice of which is given prior to December 31, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.Make-Whole Restricted Units. To compensate Employee for unvested long-term incentives granted to Employee by Employee's prior employer but forfeited by reason of Employee's commencement of services with the Company and its Affiliates, as soon as administratively practicable following the Commencement Date, Employee shall be granted 23,530 restricted Class A-2 Units of the Partnership (the "**Make-Whole Restricted Units**"), which shall be granted pursuant to, and subject to the terms and conditions of, the Equity Plan, the LP Agreement, and such other terms and conditions set forth in the applicable award agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.Common Unit Investment. Following the Commencement Date, Employee will receive an opportunity to purchase Class A-2 Units of the Partnership ("**Common Units**") at a purchase price equal to the fair market value of a Common Unit (which, as of the date hereof, is $85.00 per Common Unit), subject to a minimum of $50,000. The investment will be subject to the terms and conditions of the LP Agreement, the Equity Plan and such other terms and conditions set forth in the applicable subscription agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.Retirement, Health and Welfare Benefits. Employee shall be entitled to participate in and receive the health, hospitalization, medical, dental, life insurance, accidental death, disability and other insurance plans and benefits provided by the Company, and to participate in the 401(k) and other qualified profit-sharing, deferred compensation, pension, savings and other similar plans of the Company, as and to the extent the Company provides such benefits generally to other employees of the Company or to executive employees of the Company. It is understood and agreed that such benefits may be changed or discontinued from time to time in the sole discretion of the Company. During the term of this Agreement, Employee shall be entitled to six (6)

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weeks of vacation per year, subject to the generally applicable policies of the Company in effect from time to time, including the current provision of the policy that vacation does not carry over from year to year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.Relocation Benefits. In connection with the relocation of Employee's residence to Cary, North Carolina during the first six months following the Commencement Date, Employee shall receive relocation benefits under the Company's relocation policy for Tier I employees; *provided* that, in the case of multiple relocation events, such relocation benefits shall only be provided for one of such relocation events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Clawback; Company Policies. To the extent required by applicable law or regulation, any applicable stock exchange listing standards or any "clawback" policy adopted by the Company, all of Employee's compensation (whether paid in cash, long term incentive awards or otherwise) shall be subject to the provisions of any applicable clawback policies or procedures of the Company, which may provide for forfeiture and/or recoupment of such amounts paid or payable under this Agreement or otherwise. Employee shall also be subject to applicable policies of the Company as in effect from time to time.

5.**Termination Payments.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Minimum Termination Compensation. Employee shall serve in an at-will capacity and Employee and/or the Company may terminate the employment of Employee at any time with or without Cause. Upon any termination of employment of Employee for any reason other than as set forth in Section 5.b or Section 5.c, whether on, before or after the expiration of the term of this Agreement, Employee shall be entitled to receive (i) that portion of Employee's annual base salary, at the rate then in effect, earned by Employee or accrued for Employee's account through the date of the termination of Employee's employment hereunder or for which Employee is entitled to payment for events or circumstances occurring on or through the date of termination of Employee's employment, (ii) any bonus to which Employee is entitled to pursuant to the Bonus Plan for the fiscal year ending prior to the date of termination, (iii) reimbursement of business expenses properly incurred in accordance with applicable Company policy prior to the date of termination and (iv) subject to Section 5.f, any generally applicable vested benefits to which Employee is entitled as a former employee under the employee benefit plans of the Company and its Affiliates (collectively, the "**Minimum Termination Compensation**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Payment Other than Following a Change in Control and Other than During a Potential Change in Control Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)If Employee's employment is terminated by the Company without Cause, or by Employee for Good Reason, in either case other than within twenty-four (24) months after a Change in Control and other than during a Potential Change in Control Period (and excluding by reason of Employee's death or permanent disability), then, in addition to the Minimum Termination Compensation, Employee shall be entitled to receive (A) one (1) times Employee's annual base salary at the highest annualized rate in effect during the one (1) year period immediately preceding the date of termination (the "**Base Severance Payment**"), (B) a prorated annual bonus under the Bonus Plan

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for the fiscal year in which the date of termination occurs based upon the elapsed number of days in such fiscal year through the date of termination applied to the bonus, if any, that would have been earned by Employee for such fiscal year if Employee had remained employed on the normal payment date of such bonus, based on actual performance under applicable financial metrics and applying any discretionary factors in substantially the same manner as such factors are applied to the senior executive officers of the Company whose employment has not terminated (the "**Pro Rata Bonus**") and (C) payment or reimbursement of the premiums for medical and dental coverage, at the active employee rate and at the coverage levels in effect as of the date of termination, that would otherwise be payable for the period of coverage applicable to Employee (up to a maximum of twelve (12) months) under the Consolidated Omnibus Budget Reconciliation Act of 1985, currently embodied in Section 4980B of the Internal Revenue Code of 1986, as amended (the "**Code**") (the "**COBRA Premium Payments**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The Base Severance Payment and COBRA Premium Payments shall be payable in substantially equal installments on regular payroll dates over the one (1) year period following the date of termination, except as otherwise set forth in Section 26 hereof and subject to the next following sentence; *provided* that any installments that would be paid if the Release Commencement Date (as defined below) were the date of termination shall be paid on the first payroll date after the Release Commencement Date, unless the Release Period (as defined below) begins in one calendar year and ends in the subsequent calendar year, in which case such installments shall be paid on the first payroll date in the subsequent calendar year. Employee's right to receive the Base Severance Payment, the Pro Rata Bonus, and the COBRA Premium Payments shall be conditioned on Employee's execution, delivery and non-revocation of a general release of any and all claims against the Company and its Affiliates within thirty (30) days (or such longer period as required by applicable law) following the date of termination (such release of claims, the "**Release**"; such thirty (30) day period, the "**Release Period**", and the Commencement Date of the Release, the "**Release Commencement Date**"), which Release shall be in the form provided by the Company. The Pro Rata Bonus shall be paid in a lump sum at the same time as paid to other senior executive officers of the Company but not later than March 15<sup>th</sup> of the year following the year in which the date of termination occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Payment following a Change in Control or During a Potential Change in Control Period. If Employee's employment is terminated by the Company without Cause, or by Employee for Good Reason within twenty-four (24) months after a Change in Control, then, in addition to the Minimum Termination Compensation, Employee shall be entitled to receive (i) the Base Severance Payment, (ii) an additional severance payment equal to the sum of (x) one (1) times Employee's annual base salary at the highest annualized rate in effect during the one (1) year period immediately preceding the date of the Change in Control, plus (y) two (2) times the target annual bonus of Employee for the year in which the date of termination occurs (the sum of clauses (x) and (y), the "**CIC Severance Payment**"), (iii) the Pro Rata Bonus and (iv) the COBRA Premium Payments, except that the COBRA Premium Payments shall be for eighteen (18) months rather than twelve (12) months. The CIC Severance Payment shall be payable in a lump sum on the first payroll date following the Release Effective Date, except as otherwise set forth in Section 26 hereof. Employee's right to receive the CIC

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Severance Payment, the Pro Rata Bonus and the COBRA Premium Payments shall be conditioned on Employee's execution, delivery and non-revocation of the Release during the Release Period. The Pro Rata Bonus shall be paid in a lump sum not later than March 15th of the year following the year in which the date of termination occurs. In addition, if Employee is entitled to payment of both the Base Severance Payment and the CIC Severance Payment hereunder, then, to the maximum extent permissible under Section 409A (including, but not limited to, the application of Treas. Regs. §1.409A-1(b)(4), Treas. Regs. §1.409A-1(b)(9)(iii) and Treas. Regs. §1.409A-3(c) (clause (1) (in each case as and to the extent applicable)), the Base Severance Payment shall be paid in a lump sum at the same time as the CIC Severance Payment (and any portion of the Base Severance Payment that is not capable of being paid at the same time as the CIC Severance Payment shall be paid as provided in Section 5.b, and subject to Section 26). If Employee's employment is terminated by the Company without Cause or by Employee for Good Reason during a Potential Change in Control Period, then Employee will be entitled to the severance payments and termination benefits set forth in Section 5.b subject to the terms and conditions of such Section, and, if and when the Change in Control related to such Potential Change in Control Period subsequently occurs, (x) Employee will also be entitled to receive the CIC Severance Payment subject to the terms and conditions of this Section 5.c, and (y) an additional six (6) months shall be added to the duration of the COBRA Premium Payments as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Impact of Termination on Equity Awards. In the event of any termination of Employee's employment (either by Employee or the Company), the terms of the applicable equity award agreements and the Equity Plan pursuant to which such awards were granted shall govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.Parachute Tax Limitation. Notwithstanding anything in this Agreement to the contrary, if any amounts due to Employee under this Agreement and any other plan or program or award of the Company or any Affiliate constitute a "parachute payment," as such term is defined in Section 280G(b)(2) of the Code at a time when the shareholder approval requirements described in Q/A-7 of Treas. Regs. § 1.280G-1 are not applicable as a result of the stock of the Company (or any applicable affiliate) being readily tradeable on an established securities market or otherwise, and the amount of the parachute payment, reduced by the excise tax imposed pursuant to Section 4999 of the Code, is less than the amount Employee would receive if Employee were paid three times Employee's "base amount," as defined in Section 280G(b)(3) of the Code, less one dollar, then the aggregate of the amounts constituting the parachute payment shall be reduced to an amount that will equal three times Employee's base amount less one dollar. The calculations to be made with respect to this subsection shall be made by an accounting firm jointly selected by the Company and Employee and paid by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.No Duty to Mitigate Nor Offsets; No Other Severance; No Reduction for Deferred Compensation. Notwithstanding anything in this Agreement to the contrary, if Employee's employment is terminated following the occurrence of a Change in Control, Employee shall have no duty to seek other employment nor shall any payments made or to be made to Employee pursuant to this Agreement following such Change in

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Control be offset by any amount earned from other employment or for any other reason. The payments and benefits to be provided to Employee pursuant to this Section 5 upon termination of Employee's employment shall constitute the exclusive payments and benefits in the nature of severance or termination pay or salary continuation and termination benefits which shall be due to Employee upon a termination of employment and shall be in lieu of any other such payments under any plan, program, policy or other arrangement which has heretofore been or shall hereafter be established by the Company or any of its Affiliates. The calculations of the Minimum Termination Compensation, Base Severance Payment, CIC Severance Payment, Pro Rata Bonus and COBRA Premium Payments shall be made without reduction for any voluntary deferral of compensation made by Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.Full Satisfaction of Obligations. Payment by the Company of the amounts owed to Employee pursuant to this Section 5 shall fully satisfy all obligations of the Company to Employee under this Agreement if the employment of Employee is terminated hereunder prior to the expiration of the term of this Agreement, and all obligations of the Company and Employee to each other set forth in Sections 1 through 4 of this Agreement shall terminate and be of no further force or effect as of the date of termination. No termination of employment hereunder, whether by the Company or Employee and whether with or without Cause or Good Reason, shall terminate the provisions of Sections 6 or 7 or any subsequent sections of this Agreement and each of such sections shall remain in full force and effect as binding obligations of the Parties in accordance with their express terms.

6.**Business Disclosures.** Employee acknowledges that Employee will have access to and will become familiar with all or substantially all of the Confidential Information of the Company and its Affiliates. As a material inducement to the Company to enter into this Agreement and to pay to Employee the compensation stated herein, Employee covenants and agrees that Employee will not, at any time during or following the termination of Employee's employment with the Company, directly or indirectly divulge or disclose for any purpose whatsoever any Confidential Information that has been obtained by or disclosed to Employee in connection with Employee's employment with the Company or any of its Affiliates. If Employee is required in or pursuant to any legal, judicial or administrative proceeding (by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process) to disclose any Confidential Information, Employee shall notify, as promptly as practicable, the Company of such request or requirement so that the Company, at its expense, may seek an appropriate protective order or waive compliance with the provisions of this Agreement, and/or take any other action deemed appropriate by the Company. If, in the absence of a protective order or the receipt of a waiver hereunder, Employee is compelled or required by law or the order of any governmental, regulatory or self-regulatory body to disclose the Confidential Information, Employee may disclose only that portion of the requested Confidential Information which Employee is compelled or required to disclose, and Employee will exercise Employee's reasonable efforts to obtain reliable assurance that confidential treatment will be accorded the Confidential Information.

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No confidentiality or other obligation Employee owes to the Company prohibits Employee from reporting possible violations of law or regulation to any governmental authority or entity under any applicable whistleblower protection provision of applicable U.S. federal or state law or regulation (including Section 21F of the Securities Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002) or requires Employee to notify the Company of any such report. Employee is hereby notified that the immunity provisions in Section 1833 of title 18 of the United States Code provide that an individual cannot be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that is made (i) in confidence to federal, state or local government officials, either directly or indirectly, or to an attorney, and is solely for the purpose of reporting or investigating a suspected violation of the law, (ii) under seal in a complaint or other document filed in a lawsuit or other proceeding, or (iii) to Employee's attorney in connection with a lawsuit for retaliation for reporting a suspected violation of law (and the trade secret may be used in the court proceedings for such lawsuit) as long as any document containing the trade secret is filed under seal and the trade secret is not disclosed except pursuant to court order.

7.**Non-Competition; Non-Solicitation; Non-Disparagement and Non-Interference; Cooperation.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.During the (i) period of employment of Employee by the Company, and (ii) for a period of two (2) years following Employee's termination of employment (whether initiated by Employee or by the Company) for any reason (the "**Restricted Period**"), Employee shall not, directly or indirectly and whether on Employee's own behalf or on behalf of any other person, partnership, association, corporation or other entity, engage in or be an owner, director, officer, employee, agent, consultant or other representative of or for, or lend money or equipment to or otherwise support, Competitive Activities (as defined below) within the Territory (as defined below). For the purposes of this Agreement, "**Competitive Activities**" shall mean (x) any business that is engaged in the design, engineering, manufacturing, installation and marketing of exterior building products, including, for avoidance of doubt, in the residential or commercial sectors and with respect to both new construction and repairs and remodeling, that are the same as or similar to those designed, engineered, manufactured, installed or marketed by the Company or its subsidiaries during the then last two years of Employee's period of employment and (y) any other business that is a material competitor of a material business that is conducted by the Company or its subsidiaries during the then last two years of Employee's period of employment. The "**Territory**" shall mean (i) the United States and (ii) any other territory in which the Company or its subsidiaries engages in Competitive Activities during the then last two years of Employee's period of employment. Ownership by Employee of equity securities of the Company, or of equity securities in other public or privately-owned companies that compete with the Company constituting less than 1% of the voting securities in such companies, shall be deemed not to be a breach of this covenant. Employee agrees and stipulates that in any action or claim brought by Employee or in any action or claim brought against Employee involving the provisions of this Section 7, Employee hereby waives any claim or defense that the above non-competition covenants are unenforceable, void or voidable, for any reason, including, but not limited to, fraud, misrepresentation, illegality, unenforceable restraint of trade, failure of consideration, illusory contract, mistake, or any other

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substantive legal defense. Nothing in this Section 7(a) shall prohibit Employee from being employed or engaged, following the termination of Employee's services with the Company or its subsidiaries, by any person in a role that does not have responsibility for, or require performance of, any of the same or similar functions, duties, research, development or other activities that Employee performed or had oversight for, advised on, researched or developed, on behalf of the Company or its subsidiaries, unless Employee's performance of such role (whether as an employee, contractor, advisor or otherwise) is reasonably likely to risk Employee's disclosure and/or use of Confidential Information that Employee learned in connection with Employee's services to the Company or its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.During the Restricted Period, Employee shall not, directly or indirectly and whether on Employee's own behalf or on behalf of any other person, partnership, association, corporation or other entity, either (i) recruit, hire or solicit the employment or service of any Restricted Service Provider (as defined below); (ii) in any manner attempt to influence, induce, or encourage any Restricted Service Provider to leave the employment or service of the Company or its subsidiaries; (iii) use or disclose to any person, partnership, association, corporation or other entity any information concerning the names and addresses of any employees, agents or consultants of the Company or its subsidiaries unless such use or disclosure is of a personal nature, is requested by the Company or is required by due process of law; or (iv) call upon, solicit, divert or attempt to call upon, solicit or divert the business of any customer, vendor or acquisition prospect of the Company or any of its Affiliates with whom Employee dealt, directly or indirectly, during the then last two years of Employee's employment or engagement with the Company or its subsidiaries. For purposes of this Agreement, a "**Restricted Service Provider**" is any natural person employed by or otherwise engaged to perform services for the Company or any of its subsidiaries at any time during the then preceding 12 months, other than any such solicitation or employment on behalf of the Company or any of its subsidiaries during the Employee's period of employment. Employee agrees and stipulates that in any action or claim brought by Employee or in any action or claim brought against Employee involving the provisions of this Section 7, Employee hereby waives any claim or defense that the above non-solicitation covenants are unenforceable, void or voidable, for any reason, including, but not limited to, fraud, misrepresentation, illegality, unenforceable restraint of trade, failure of consideration, illusory contract, mistake, or any other substantive legal defense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.To the extent permitted by the law, Employee agrees to refrain from any criticisms or disparaging comments about the Company or any subsidiaries (including any current officer, director or employee of the Company), and Employee agrees not to take any action, or assist any person in taking any other action, that is adverse to the interests of the Company or any subsidiary or inconsistent with fostering the goodwill of the Company and its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.In the event of termination of Employee's employment for any reason (other than death), Employee agrees to cooperate with the Company and to be reasonably available to the Company for a reasonable period of time thereafter with respect to matters arising out of Employee's employment hereunder or any other relationship with the Company, whether such matters are business-related, legal, or

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otherwise. The Company shall reimburse Employee for all expenses incurred by Employee during such period in connection with such cooperation with the Company. Any such cooperation shall be (i) at reasonable times and locations, (ii) upon reasonable notice, and (iii) take into account any responsibilities to which Employee is subject to a subsequent employer or otherwise.

8.**Permitted Disclosures**. Nothing in this Agreement is intended to conflict with the whistleblower provisions of any United States federal, state or local law or regulation, including but not limited to Rule 21F-17 of the Securities Exchange Act of 1934 or Section 1833(b) of the Defend Trade Secrets Act of 2016. Accordingly, notwithstanding anything to the contrary herein, nothing in this Agreement will prohibit or restrict Employee from lawfully (i) initiating communications directly with, cooperating with, providing information to, causing information to be provided to, or otherwise assisting in an investigation by the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission, the Department of Justice, the Congress, any agency Inspector General, or any other governmental or regulatory agency, entity, or official(s) (collectively, "**Governmental Authorities**") regarding a possible violation of any law; (ii) responding to any inquiry or legal process from any such Governmental Authorities; (iii) testifying, participating, cooperating or otherwise assisting in an investigation, action or proceeding by any such Governmental Authorities relating to a possible violation of law and/or pursuant to the Sarbanes-Oxley Act; (iv) making any other disclosures that are protected under the whistleblower provisions of any applicable law, rule or regulation; or (v) seeking or receiving any U.S. Securities and Exchange Commission awards or other relief in connection with protected whistleblower activity. Additionally, pursuant to the federal Defend Trade Secrets Act of 2016, Employee shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (A) is made (x) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (y) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made to Employee's attorney in relation to a lawsuit for retaliation against Employee for reporting a suspected violation of law; or (C) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Nothing in this Agreement requires Employee to obtain prior authorization from the Company or any subsidiary or any other person before engaging in any conduct described in this Section, or to notify the Company, its subsidiaries, or any other person that Employee has engaged in any such conduct. Nothing herein prevents Employee from discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that Employee has reason to believe is unlawful. Nothing in this Agreement shall interfere with or impede Employee rights under section 7 of the National Labor Relations Act, including the right to engage in concerted activity (if applicable). The covenants in Section 6 and this Section 7 shall not apply to Employee's good faith performance of her duties during the term of this Agreement for the benefit of the Company or its Affiliates.

9.**Consideration for Covenants; Reasonableness.** Employee acknowledges and agrees as follows:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.The Confidential Information of the Company and its Affiliates is unique and was developed or acquired by them through the expenditure of valuable time and resources; that the Company and its Affiliates derive independent economic value from this Confidential Information not being generally known to the public or to other persons who can obtain economic value from its disclosure or use; that the Company and its Affiliates have taken all prudent and necessary measures to preserve the proprietary and confidential nature of its Confidential Information, and that the covenants set forth in Sections 6 and 7 are the most reasonable, efficient and practical means to protect the Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.The covenants set forth in Sections 6 and 7 are necessary to protect the goodwill of the Company and its Affiliates during the employment of Employee hereunder, and to ensure that such goodwill will be preserved and continued for the benefit of the Company and its Affiliates after Employee's employment terminates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Due to the nature of the business as heretofore conducted by the Company and its Affiliates and as contemplated to be continued and conducted by the Company and its Affiliates, the scope and the duration of the covenants set forth in Sections 6 and 7 of this Agreement are in all respects reasonable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.The covenants set forth in Sections 6 and 7 each constitute a separate agreement independently supported by good and adequate consideration and that each such agreement shall be severable from the other provisions of this Agreement and shall survive this Agreement. The existence of any claim or cause of action of Employee against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants and agreements of Employee set forth in Sections 6 and 7.

10.**Surrender of Books and Records.** Employee shall on the termination of Employee's employment in any manner immediately surrender to the Company all lists, books, and records and other documents incident to the business of the Company and its Affiliates, and all other property belonging to any of them, it being understood that all such lists, books, records and other documents are the property of the Company and its Affiliates.

11.**Waiver of Breach.** The failure of the Company or Employee at any time to require performance by the other of any provision hereof shall in no way affect any of their respective rights thereafter to enforce the same, nor shall the waiver by the Company or Employee of any breach of any provision hereof be taken or held to be a waiver of any succeeding breach of any provision or as a waiver of the provision itself.

12.**Remedies.** In the event of Employee's breach, or threatened breach, of any term or provision contained in Sections 6 or 7 of this Agreement, Employee agrees that the Company and its Affiliates shall suffer irreparable harm not compensable by damages or other legal remedies, and that accordingly the Company shall be entitled to both temporary and permanent injunctive relief without the necessity of independent proof by it as to the inadequacy of legal remedies or the nature or extent of the irreparable harm suffered by it. The right of the Company to such relief shall not be construed to prevent it from pursuing, either consecutively or concurrently, any and all other legal or equitable

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remedies available to it for such breach or threatened breach, specifically including, without limitation, the recovery of monetary damages. Without limiting the generality of the relief that may be sought by the Company pursuant to this Section 12, the Company shall be entitled, under the circumstances set forth herein, to cause any unpaid portion of the severance payments and termination benefits otherwise payable under this Agreement to be irrevocably forfeited and, at the demand of the Company, Employee shall be required to repay the severance payments that have previously been paid to Employee.

13.**Severability.** It is the desire and intent of the Parties that the provisions of Sections 6 and 7 be enforced to the fullest extent permissible under the laws and public policies of each jurisdiction in which enforcement is sought. If any provision of Sections 6 or 7 relating to the time period, scope of activities or geographic area of restrictions is declared by a court of competent jurisdiction to exceed the maximum permissible time period, scope of activities or geographic area, the same shall be reduced to the maximum which such court deems enforceable. If any provisions of Sections 6 and 7 other than those described in the preceding sentence are adjudicated to be invalid or unenforceable, the invalid or unenforceable provisions shall be deemed amended (with respect only to the jurisdiction in which such adjudication is made) in such manner as to render them enforceable and to effectuate as nearly as possible the intentions and agreement of the Parties. Furthermore, if any other provision contained in this Agreement should be held illegal, invalid or unenforceable in whole or in part by a court of competent jurisdiction, then it is the intent of the Parties hereto that the balance of this Agreement be enforced to the fullest extent permitted by applicable law and, in lieu of such illegal, invalid or unenforceable provision, there shall be added automatically as part of this Agreement, a provision as similar in its terms to such invalid provision as may be possible and be legal, valid, and enforceable.

14.**Attorneys' Fees.** In the event of any suit or judicial proceeding (other than an arbitration proceeding) between the Parties hereto with respect to this Agreement, the court in which such suit is decided may award reasonable attorneys' fees and costs, as actually incurred and including, without limitation, attorneys' fees and costs incurred in appellate proceedings to the party that prevails in such dispute.

15.**Survival.** Notwithstanding anything to the contrary contained herein, the provisions of this Agreement that contemplate performance by the Parties following termination of this Agreement (including without limitation Sections 5-7 hereof) shall survive the termination of this Agreement.

16.**Notice.** All notices hereunder shall be in writing and shall be delivered personally, sent by facsimile transmission or sent by e-mail or certified, registered or overnight mail, postage prepaid. Such notices shall be deemed to have been duly given upon receipt, if personally delivered, upon telephonic confirmation of receipt if sent by facsimile transmission, the date of transmission, if such notice or communication is delivered via e-mail prior to 5:00 p.m. (New York City time) on a business day, (b) the business day after the date of transmission, if such notice or communication is delivered via e-mail later than 5:00 p.m. (New York City time) on any business day and earlier than 11:59 p.m. (New York City time) on the day preceding the next business day, and if mailed,

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five (5) days after the date of mailing (two (2) days in the case of overnight mail), in each case addressed to the Parties at the following addresses or at such other addresses as shall be specified in writing and in accordance with this Section:

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| | |
|:---|:---|
| **If to Employee:** | Address shown on the employment records of the Company |
| **If to the Company:** | Cornerstone Building Brands, Inc.<br>5020 Weston Parkway, Suite 400<br>Cary, North Carolina 27513<br>Telecopier: (919) 677-3914<br>Attention: Executive Vice President, General Counsel & Corporate Secretary<br>E-mail: Alena.Brenner@cornerstone-bb.com |

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17.**Entire Agreement.** This Agreement supersedes any and all other agreements, either oral or written, between the Parties hereto with respect to the subject matter hereof, and contains all of the covenants and agreements between the Parties with respect thereto. Except as expressly provided herein, the specific arrangements referred to herein are not intended to exclude or limit Employee's participation in other benefits available to Employee or personnel of the Company generally, or to preclude or limit other compensation or benefits as may be authorized by the Board at any time, or to limit or reduce any compensation or benefits to which Employee would be entitled but for this Agreement.

18.**Modification.** No change or modification of this Agreement shall be valid or binding upon the Parties hereto, nor shall any waiver of any term or condition in the future be so binding, unless such change or modification or waiver shall be in writing and signed by the Parties hereto.

19.**Governing Law and Venue.** This Agreement, and the rights and obligations of the Parties hereunder, shall be governed by and construed in accordance with the laws of the State of Delaware and venue for any action pursuant hereto shall be in the appropriate state or federal court in or for Wake County, North Carolina.

20.**Acknowledgment Regarding Counsel.** Each of the Parties to this Agreement acknowledges that each of them has had the opportunity to seek and has sought counsel to review this Agreement and to obtain and has obtained the advice of such counsel relating thereto.

21.**Counterparts.** This Agreement may be executed in counterparts, each of which shall constitute an original, but all of which shall constitute one and the same document.

22.**Assignment.** Subject to compliance with the provisions of this Agreement, the Company shall have the right to assign this Agreement and its obligations hereunder to any of their Affiliates. No such assignment shall operate to relieve the Company or any successor assignor from liability hereunder, and this Agreement shall remain an enforceable obligation of the Company and each such successor. The rights, duties and benefits to Employee hereunder are personal to Employee, and no such right or benefit

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may be assigned by Employee. For purposes of this Agreement, all references herein to the Company is deemed to be also a reference to any Affiliate of the Company that either has or is required to assume the obligations of the Company pursuant to this section.

23.**Tax Withholding.** The Company may withhold from any payments or benefits payable under this Agreement all federal, state, city or other taxes required to be withheld pursuant to any law or governmental regulation or ruling.

24.**Payment by Subsidiaries.** Employee acknowledges and agrees that the Company may satisfy its obligations to make payments to Employee under this Agreement by causing one or more of its subsidiaries or Affiliates to make such payments to Employee. Employee agrees that any such payment made by any such subsidiary or Affiliate shall fully satisfy and discharge the Company's obligation to make such payment to Employee hereunder. In such event, references in this Agreement to benefits plans and policies "of the Company" shall be deemed to refer to the plans and policies of the applicable subsidiary or Affiliate.

25.**Payment to Estate.** If Employee dies prior to full satisfaction of the obligations owed to Employee under this Agreement, any monies that may be due Employee under this Agreement as of the date of Employee's death will be paid to Employee's estate.

26.**Section 409A.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.If Employee is a "specified employee," as such term is defined in Section 409A and determined by the Company, and if any portion of the payments and benefits to be provided to Employee pursuant to Section 5is subject to Section 409A, the character and timing of the payment thereof shall be as determined in this Section 26(a). It is hereby specified that as much of the payments and benefits to be provided to Employee pursuant to Section 5 as can be paid without the application of Section 409A(a)(2)(B)(i) and Treas. Regs. §1.409A-1(i) shall be paid at times consistent with Section 5.b or Section 5.c as applicable and without application of this Section 26. The remaining portion of the payments and benefits to be provided to Employee pursuant to Section 5 shall not be payable before the earlier of (i) the date that is six months after Employee's termination, (ii) the date of Employee's death, or (iii) one or more dates that otherwise comply with the requirements of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Employee and the Company agree that this Agreement is intended to comply with or be exempt from Section 409A and that any ambiguous provisions will be construed in a manner that is compliant with or exempt from the application of Section 409A. To the extent that any provision in this Agreement must be modified to comply with Section 409A (including, without limitation, Treasury Regulations § 1.409A-3(c)), such provision shall be modified in such a manner so that all payments due under this Agreement shall comply with Section 409A. In no event whatsoever will the Company be liable for any additional tax, interest or penalty that may be imposed on the Employee by Section 409A or damages for failing to comply with Section 409A. For purposes of Section 409A, each installment in a series of installment payments is intended to be a separate payment. In no event may Employee, directly or indirectly, designate the calendar year of payment. Notwithstanding anything contained herein to

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the contrary, Employee shall not be considered to have terminated employment with the Company for purposes of this Agreement unless the Employee would be considered to have incurred a "separation from service" from the Company within the meaning of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.To the extent that reimbursements or other in-kind benefits under this Agreement constitute "nonqualified deferred compensation" for purposes of Section 409A, (i) all expenses or other reimbursements hereunder will be made on or before the last day of the taxable year following the taxable year in which such expenses were incurred by Employee, (ii) any right to reimbursement or in-kind benefits will not be subject to liquidation or exchange for another benefit, and (iii) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year will in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.

27.**Captions.** The captions, headings, and arrangements used in this Agreement are for convenience only and do not in any way affect, limit, amplify, or modify the terms and provisions hereof.

28.**Binding Effect.** This Agreement shall be binding upon the Parties hereto, together with their respective executors, administrators, successors, personal representatives, heirs and assigns.

[*Signature Page Follows*]

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IN WITNESS WHEREOF, the undersigned have executed this Agreement effective as of the date set forth herein.

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| | |
|:---|:---|
| **EMPLOYEE** | **EMPLOYEE** |
| **/s/ Gunner Smith** | **/s/ Gunner Smith** |
| **Gunner Smith** | **Gunner Smith** |
| **CORNERSTONE BUILDING BRANDS, INC.** | **CORNERSTONE BUILDING BRANDS, INC.** |
| **By:** | **/s/ Alena Brenner** |
|  | **Alena Brenner** |
|  | **Executive Vice President, General Counsel**  |
|  | **and Corporate Secretary** |

---

*[Signature Page to Gunner Smith Employment Agreement]*

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**APPENDIX A**

**DEFINITIONS**

The following terms have the indicated meanings for purposes of this Agreement:

(a)"**Affiliate**" means any entity controlled by, controlling or under common control with a person or entity.

(b)"**Bonus Plan**" has the meaning set forth in Section 4.b.

(c)"**Cause**" shall mean any of the following occurring after the Commencement Date: (i) Employee's willful and continued failure to substantially perform Employee's duties and other obligations under this Agreement, if such failure continues for a period of thirty (30) days after written notice by the Company of the existence of such failure; (ii) Employee's willful and material violation of the Company's code of conduct or other material written policy of which Employee has notice, which violation is not cured within thirty (30) days after written notice by the Company of the existence of such violation; provided however, that only one such notice by the Company need be sent and, if such failure re-occurs thereafter, no further notice and opportunity to cure such failure shall be required; (iii) the willful engaging by Employee in material misconduct which (A) brings the Company or any of its Subsidiaries into public disgrace, or (B) harms the business operations of the Company or any of its Subsidiaries; (iv) Employee's conviction for committing an act of fraud, embezzlement, theft or other act constituting a felony; or (v) the breach or failure by Employee to perform any of its material covenants contained in this Agreement or any other agreement to which the Company and the Employee are parties; provided, however, that the Board must first provide to Employee written notice clearly and fully describing the particular acts or omissions which the Board reasonably believes in good faith constitutes Cause hereunder, and providing an opportunity, within thirty (30) days following the receipt of such notice, to meet in person with the Board to explain the alleged acts or omissions relied upon by the Board and, to the extent practicable, to cure such acts or omissions. For purposes of this Agreement, any termination of Employee's employment for Cause shall be effective only upon delivery to Employee of a certified copy of a resolution of the Board, adopted by the affirmative vote of a majority of the entire membership of the Board following a meeting at which Employee was given an opportunity to be heard on at least five (5) business days' advance written notice, finding that Employee was guilty of the conduct constituting Cause, and specifying the particulars thereof. Further, for the purposes of this Agreement, no act or failure to act on Employee's part shall be considered willful unless done, or omitted from being done, by Employee not in good faith and without reasonable belief that Employee's action or omission was in the best interest of the Company.

(d)"**Confidential Information**" means all information, whether oral or written, previously or hereafter developed, that relates to the business as heretofore conducted by the Company, or which is hereafter otherwise acquired or used by the Company or its subsidiaries and Affiliates, that is not generally known to others in the Company's area of business or, if known, was obtained wrongfully by such other person or entity or with knowledge that it was proprietary or confidential information of or relating to the

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business as heretofore conducted by the Company or of or relating to the business of the Company or its subsidiaries and Affiliates. Confidential Information shall include, without limitation, trade secrets, methods or practices, financial results or plans, customer or client lists, personnel information, information relating to negotiations with clients or prospective clients, proprietary software, databases, programming or data transmission methods, or copyrighted materials (including without limitation, brochures, layouts, letters, art work, copy, photographs or illustrations). It is expressly understood that the foregoing list shall be illustrative only and is not intended to be an exclusive or exhaustive list of Confidential Information.

(e)"**Change in Control**" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)any "person" (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934) is or becomes, on any date, the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the combined voting power of the Company's then outstanding securities, excluding (A) any such acquisition by any person that already directly or indirectly owns securities representing such percentage of the voting power of the Company's then outstanding securities as of such date (a "**Controlling Person**") and (B) any direct or indirect acquisition of the Company's then outstanding securities by a person which is inadvertent and/or otherwise not entered into for the purpose of, and does not have the effect of, changing or influencing the control of, the Company (including, but not limited to, the sale of securities by a Controlling Person in the public market) (clause (A) or (B), a "**Non-Control Transaction**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)as a result of, or in connection with, any tender offer or exchange offer, merger, or other business combination (a "**Transaction**"), the persons who were directors of the Company immediately before the Transaction (each, an "**Incumbent Director**") shall cease to constitute a majority of the Board or the board of directors or any successor to the Company (or, if applicable, the parent thereof resulting from the Transaction); provided that any director elected or nominated for election to the Board (or such board) by a majority of the Incumbent Directors then still in office shall be deemed to be an Incumbent Director for purposes of this clause (ii), except that any member of the Board whose initial assumption of office occurs as a result of (including by reason of the settlement of) an actual or threatened proxy contest, election contest or other contested election of directors shall in no event be considered an Incumbent Director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)the Company is merged or consolidated with another person, or transfers substantially all of its assets to another person, and immediately following the merger, consolidation or transfer either (x)(I) less than fifty percent (50%) of the outstanding voting securities of the acquiring, surviving or resulting person (as applicable), or, if applicable, the ultimate parent entity of such person, shall then be owned in the aggregate by the former stockholders of the Company or (II) fifty percent (50%) or more of the outstanding voting securities of the acquiring, surviving or resulting person (as applicable), or, if applicable, the ultimate parent entity of such person, shall then be owned in the aggregate by the direct or indirect former stockholders of the Company but

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other than in substantially the same relative proportions as immediately prior to such transaction, and in each case excluding a Non-Control Transaction or (y) the individuals who were members of the Incumbent Board immediately prior to the agreement providing for such transaction constitute less than a majority of the members of the board of directors of the acquiring, surviving or resulting person (as applicable), or, if applicable, the ultimate parent entity of such person, and in each case excluding a Non-Control Transaction; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)a tender offer or exchange offer is made and consummated for the ownership of securities of the Company representing fifty percent (50%) or more of the combined voting power of the Company's then outstanding voting securities (excluding a Non-Control Transaction).

Notwithstanding anything in this definition, to the extent that any payment or benefit provided for under this Agreement constitutes "nonqualified deferred compensation" (within the meaning of Section 409A) that is payable as a result of (either directly or indirectly) a Change in Control shall only be payable if such Change in Control also constitutes a "change in control event" within the meaning of Section 409A.

(f)"**Good Reason**" means any of the following events that occurs without Employee's prior written consent after the Commencement Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)any material reduction in the amount of Employee's then current base salary or target bonus opportunity, in either case other than as part of a reduction of less than ten percent (10%) applied generally across-the-board to all of the senior executive officers of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)(A) a material reduction in Employee's title; or (B) a material, adverse reduction in the duties or responsibilities of Employee relative to Employee's duties or responsibilities as described in Section 2 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)the breach or failure by the Company to perform any of its material covenants contained in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)any relocation of Employee's principal place of employment by more than fifty (50) miles, as long as such relocation increases Employee's normal daily commute excluding, for the avoidance of doubt, the expected relocation referenced in Section 4(g) of this Agreement); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)the Company's failure to cause any successor to all or substantially all of the business or assets of the Company to expressly agree to assume the obligations of the Company under this Agreement, unless such assumption occurs automatically by operation of law.

In order for a termination of Employee to constitute a termination for Good Reason, Employee must notify the Company of the circumstances claimed to constitute Good Reason in writing not later than the thirtieth (30th) day after such circumstances have arisen or occurred and must provide the Company with at least thirty (30) days within which to cure such circumstances before terminating employment, and, failing a cure,

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Employee must terminate Employee's employment within thirty (30) days following the expiration of such cure period.

(g)"**Potential Change in Control**" shall be deemed to have occurred if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)the Company enters into an agreement, the consummation of which would result in the occurrence of a Change in Control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)any person (including the Company) publicly announces an intention to take or to consider taking actions which if consummated would constitute a Change in Control; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)the Board adopts a resolution to the effect that, for purposes of this Agreement, a Potential Change in Control has occurred.

(h)"**Potential Change in Control Period**" means the period beginning on the date the Potential Change in Control occurs and ending as of the earlier of (i) the date on which a Change in Control occurs and (ii) the date on which the Board makes a good faith determination that the likelihood of a Change in Control has terminated. In addition, Employee's employment shall be deemed to have been terminated during a Potential Change in Control Period if such termination occurs prior to a Change in Control and such termination is by the Company other than for Cause and is (x) at the request of the counterparty in such Change in Control or (y) otherwise reasonably in anticipation of such Change in Control provided that such Change in Control actually occurs.

(i)"**Section 409A**" means Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION PURSUANT TO RULE 13a-14(b)/15d-14(a)**

I, Gunner Smith, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Cornerstone Building Brands, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 7, 2025

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| |
|:---|
| /s/ Gunner Smith |
| Gunner Smith |
| Chief Executive Officer |
| (Principal Executive Officer) |

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## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION PURSUANT TO RULE 13a-14(b)/15d-14(a)**

I, Jeffrey S. Lee, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Cornerstone Building Brands, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 7, 2025

---

| |
|:---|
| /s/ Jeffrey S. Lee |
| Jeffrey S. Lee |
| Executive Vice President and Chief Financial Officer |
| (Principal Financial Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT**

In connection with the quarterly report on Form 10-Q of Cornerstone Building Brands, Inc. (the "Company") for the quarter ended September 27, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Gunner Smith, Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

 1. I have reviewed this Report of the Company;

 2. This Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 3. The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 7, 2025

---

| |
|:---|
| /s/ Gunner Smith |
| Gunner Smith |
| Chief Executive Officer |
| (Principal Executive Officer) |

---

A signed original of this written statement required by Section 906 has been provided to Cornerstone Building Brands, Inc. and will be retained by Cornerstone Building Brands, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

This Certification shall not be deemed to be "filed" or part of the Report or incorporated by reference into any of the registrant's filings with the Securities and Exchange Commission by implication or by any reference in any such filing to the Report.

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO** 

**SECTION 906 OF THE SARBANES-OXLEY ACT**

In connection with the quarterly report on Form 10-Q of Cornerstone Building Brands, Inc. (the "Company") for the quarter ended September 27, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Jeffrey S. Lee, Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

 1. I have reviewed this Report of the Company;

 2. This Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 3. The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 7, 2025

---

| |
|:---|
| /s/ Jeffrey S. Lee |
| Jeffrey S. Lee |
| Executive Vice President and Chief Financial Officer |
| (Principal Financial Officer) |

---

A signed original of this written statement required by Section 906 has been provided to Cornerstone Building Brands, Inc. and will be retained by Cornerstone Building Brands, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

This Certification shall not be deemed to be "filed" or part of the Report or incorporated by reference into any of the registrant's filings with the Securities and Exchange Commission by implication or by any reference in any such filing to the Report.

<br>