ITC Holdings Corporation

07/31/2026 | Press release | Distributed by Public on 07/31/2026 04:12

Quarterly Report for Quarter Ending June 30, 2026 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995
Our reports, filings and other public announcements contain certain statements that describe our management's beliefs concerning future business conditions, plans and prospects, forecasted capital expenditures, dividend payments, growth opportunities, the outlook for our business and the electric transmission industry, and expectations with respect to various legal and regulatory proceedings based upon information available at the time such statements are made. All statements, other than statements of historical fact, included in this report are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Wherever possible, we have identified these forward-looking statements by words such as "will," "may," "anticipates," "believes," "intends," "estimates," "expects," "forecasted," "projects," "likely," "could," "might," "target," "would," "plan," "potential," "continue," "should," "predict," "seeks," and the negative of these terms, and similar phrases. These forward-looking statements are based upon assumptions our management believes are reasonable. Such forward-looking statements are based on estimates and assumptions and are subject to significant risks and uncertainties which could cause our actual results, performance and achievements to differ materially from those expressed in, or implied by, these statements, including, among others, the following risks and uncertainties listed in "Item 1A. Risk Factors" of our Form 10-K for the year ended December 31, 2025 and those included in or modified by this report or our other reports filed with the SEC from time to time:
•Certain elements of our Regulated Operating Subsidiaries' Formula Rates have been and can be challenged, which could result in lowered rates and/or refunds of amounts previously collected and thus may have an adverse effect on our business, financial condition, results of operations and cash flows.
•Our actual capital investment may be lower than planned, which would cause a lower than anticipated rate base and would therefore result in lower revenues, earnings and associated cash flows compared to our current expectations. In addition, shifts in federal, state, or regulatory policies promoting increased competition, including competitive bid projects, may decrease future capital investment opportunities outside our five-year capital investment plan.
•The regulations to which we are subject may limit our ability to raise capital and/or pursue acquisitions, development opportunities or other transactions or may subject us to liabilities.
•Changes in energy laws, regulations or policies could impact our business, financial condition, results of operations and cash flows.
•Each of our MISO Regulated Operating Subsidiaries depends on its primary customer for a substantial portion of its revenues, and any material failure by those primary customers to make payments for transmission services could have a material adverse effect on our business, financial condition, results of operations and cash flows.
•A significant amount of the land on which our assets are located is subject to easements, mineral rights and other similar encumbrances. As a result, we must comply with the provisions of various easements, mineral rights and other similar encumbrances, which may adversely impact our ability to complete construction projects in a timely manner.
•We contract with third parties to provide services for certain aspects of our business. If any of these agreements are terminated, we may face a shortage of labor or replacement contractors to provide the services formerly provided by these third parties.
•Hazards associated with high-voltage electricity transmission may result in suspension of our operations, costly litigation or the imposition of civil or criminal penalties.
•A cyber-attack or incident could have a material adverse effect on our business, financial condition, results of operations and cash flows.
•We are subject to environmental regulations and to laws that can give rise to substantial liabilities from environmental contamination.
•If amounts billed for transmission service for our Regulated Operating Subsidiaries' transmission systems are lower than expected, or our actual revenue requirements are higher than expected, the timing of actual collection of our total revenues would be delayed.
•Natural disasters, severe weather and other related phenomena, including those due to climate change, and the regulatory and legislative developments related to climate change, may have a material adverse effect on our business, financial condition, results of operations and cash flows.
•We are subject to various regulatory requirements, including reliability standards; contract filing requirements; reporting, recordkeeping and accounting requirements; and transaction approval requirements. Violations of these requirements, whether intentional or unintentional, may result in penalties that, under some circumstances, could have a material adverse effect on our business, financial condition, results of operations and cash flows.
•Changes in tax laws or regulations may negatively affect our financial condition, results of operations, net income, cash flows and credit metrics.
•The widespread outbreak of an illness or other communicable disease, or any other public health crisis, could have a material adverse impact on our business, financial condition, results of operations, cash flows and credit metrics.
•Acts of war, terrorist attacks and other catastrophic events may have a material adverse effect on our business, financial condition, results of operations and cash flows.
•Advances in technology may negatively impact our business, financial condition, results of operations and cash flows.
•ITC Holdings is a holding company with no operations, and unless we receive dividends or other payments from our subsidiaries, we may be unable to fulfill our cash obligations.
•We have a considerable amount of debt and our reliance on debt financing may limit our ability to fulfill our debt obligations and/or to obtain additional financing.
•Adverse changes in our credit ratings may negatively affect us.
•Certain provisions in our debt instruments limit our financial and operating flexibility.
Forward-looking statements speak only as of the date made and can be affected by assumptions we might make or by known or unknown risks and uncertainties. Many factors mentioned in our discussion in this report will be important in determining future results. Consequently, we cannot assure you that our expectations or forecasts expressed in such forward-looking statements will be achieved. Except as required by law, we undertake no obligation to publicly update any of our forward-looking or other statements, whether as a result of new information, future events or otherwise.
Overview
ITC Holdings and our Regulated Operating Subsidiaries provide safe and reliable electric transmission service to connect consumers to cost-effective energy resources. Our Regulated Operating Subsidiaries continue to make investments in a modernized grid to maintain reliability and accommodate future demands as lifestyles and the economy become increasingly dependent on electricity.
Our business consists primarily of the electric transmission operations of our Regulated Operating Subsidiaries. Through our Regulated Operating Subsidiaries, we own, operate, maintain and invest in high-voltage transmission systems in Michigan's Lower Peninsula and portions of Iowa, Minnesota, Illinois, Missouri, Kansas, Oklahoma and Wisconsin that transmit electricity from generating stations to local distribution facilities connected to our transmission systems.
Our Regulated Operating Subsidiaries' primary operating responsibilities include maintaining, improving and expanding their transmission systems to meet their customers' ongoing needs, scheduling outages on system elements to allow for maintenance and construction, maintaining appropriate system voltages and monitoring flows over transmission lines and other facilities to ensure physical limits are not exceeded.
Our Regulated Operating Subsidiaries earn revenues for the use of their electric transmission systems by their customers, which include investor-owned utilities, municipalities, cooperatives, power marketers and
alternative energy suppliers. As independent transmission companies, our Regulated Operating Subsidiaries are subject to rate regulation only by the FERC, and our cost-based rates are discussed in Note 5 to the condensed consolidated interim financial statements.
Significant matters that influenced our financial condition, results of operations and cash flows for the six months ended June 30, 2026 or that may affect future results include:
•Our capital expenditures of $739 million at our Regulated Operating Subsidiaries during the six months ended June 30, 2026, as described below under "- Capital Investment and Operating Results Trends;"
•Debt activity, including derivatives, as described in Note 6 to the condensed consolidated interim financial statements;
•NOPRs previously issued by the FERC proposing changes to transmission incentives policy, as described in Note 5 to the condensed consolidated interim financial statements.
Revenue Accruals and Deferrals - Effects of Monthly Network Peak Loads
For our MISO Regulated Operating Subsidiaries, monthly network peak loads are used for billing network revenues, which currently is the largest component of our operating revenues. One of the primary factors that impacts the revenue accruals and deferrals at our MISO Regulated Operating Subsidiaries is actual monthly network peak loads experienced as compared to those forecasted in establishing the annual network transmission rate. Under their cost-based Formula Rates that contain a true-up mechanism, our MISO Regulated Operating Subsidiaries accrue or defer revenues to the extent that their actual revenue requirement for the reporting period is higher or lower, respectively, than the amounts billed relating to that reporting period. These revenue accruals and deferrals are recorded to the condensed consolidated statements of financial position within regulatory assets or regulatory liabilities, respectively. See Note 5 to the condensed consolidated interim financial statements for additional information on our Formula Rates. Although monthly network peak loads do not impact operating revenues recognized, network load affects the timing of our cash flows from transmission service. The monthly network peak load of our MISO Regulated Operating Subsidiaries is generally impacted by weather, economic conditions and other significant factors, and is seasonally shaped with higher load in the summer months when cooling demand is higher. We are unable to predict the possible future impacts of weather, economic conditions and other factors on monthly network peak loads at our MISO Regulated Operating Subsidiaries.
Capital Investment and Operating Results Trends
We expect a long-term upward trend in rate base resulting from our anticipated capital investment, in excess of depreciation and any acquisition premiums, from our Regulated Operating Subsidiaries' long-term capital investment programs to improve reliability, increase system capacity and upgrade the transmission network to support new generating resources. Investments in property, plant and equipment, when placed in-service upon completion of a capital project, are added to the rate base of our Regulated Operating Subsidiaries. We expect increases in rate base to result in a corresponding long-term upward trend in revenues and earnings. Our revenues and earnings may be impacted by future increases or decreases to our rates for ROE incentive adders and base ROE. As of June 30, 2026, we estimate that each 10 basis point change in the authorized ROE would impact annual consolidated net income by approximately $7 million. See Notes 5 and 12 to the condensed consolidated interim financial statements for additional information related to matters that have impacted base ROE and may impact future rates.
Our Regulated Operating Subsidiaries incur significant costs to invest in their transmission systems and maintain the assets on their systems. While we have been impacted by increases in inflation and supply chain disruptions, these challenges have not had a material impact on our current or forecasted capital expenditures. We work closely with our suppliers to manage costs and deliveries of required materials and supplies and attempt to ensure that our asset and inventory purchases adequately support our construction and maintenance activities. In response to these challenges, we have increased levels of certain materials and supplies inventories over time to help reduce risks related to global supply chain constraints. We continue to monitor and evaluate the potential impacts of these macroeconomic trends on our forecasted capital expenditures and maintenance activities. Changes and proposed changes to the U.S. global trade policy, along with potential international retaliatory measures, have resulted in volatility in global markets and uncertainty around short- and long-term economic impacts in the United States, including concerns over tariffs and their potential impacts on
the cost of goods, inflation, recession and slowing growth. As such, we continue to monitor and evaluate the potential impacts of these changes and measures, including the imposition of tariffs and ongoing legal challenges to such tariffs, on our business and operations. It is not currently possible to predict the impact of any changes or proposed changes to the U.S. global trade policy, or any international retaliatory measures, on our forecasted capital expenditures for the years 2026 through 2030 or our long-term financial condition, results of operations and cash flows. However, we do not currently expect a significant financial impact in 2026.
Our Regulated Operating Subsidiaries strive for high reliability of their systems and improvement in system accessibility for all generation resources. The FERC requires compliance with certain reliability standards and may take enforcement actions against violators, including the imposition of substantial fines. NERC is responsible for developing and enforcing these mandatory reliability standards. We continually assess our transmission systems against standards established by NERC, as well as the standards of applicable regional entities under NERC that have been delegated certain authority for the purpose of proposing and enforcing reliability standards. We believe that we meet the applicable standards in all material respects, although further investment in our transmission systems and an increase in maintenance activities will likely be needed to maintain compliance, improve reliability and address any new standards that may be promulgated.
We also assess our transmission systems against our own planning criteria that are filed annually with the FERC. Based on our planning studies, we see needs to make capital investments to: (1) maintain and replace our current transmission infrastructure to enhance system reliability and accommodate load growth; (2) expand access to electricity markets to reduce the overall cost of delivered energy to customers and provide access to competitive markets for economic development; (3) interconnect new generation resources; and (4) upgrade physical and technological grid security to protect critical infrastructure.
In addition to future investments identified through our planning studies, MISO continues to identify capital investment needs through its LRTP initiative. On December 12, 2024, MISO's board of directors approved a portfolio of the second tranche of 24 LRTP projects ("Tranche 2.1") with estimated total associated transmission costs of approximately $22 billion. Based on the MISO portfolio of Tranche 2.1 projects, we expect a range of $3.7 billion to $4.2 billion of additional capital investments for our MISO Regulated Operating Subsidiaries. At this time, this range includes the estimate of future capital investments for projects from the Tranche 2.1 portfolio that are not subject to a competitive bidding process. We currently anticipate that the majority of our investments for the Tranche 2.1 portfolio will occur beyond our five-year plan for forecasted capital expenditures for the years 2026 through 2030. On July 30, 2025, certain state regulatory commissions in the MISO region filed a complaint at the FERC challenging the manner in which MISO developed the Tranche 2.1 portfolio and the designation of projects in the portfolio as multi-value projects. We are monitoring developments in the complaint proceedings; however, we are unable to determine the possible impacts to capital expenditures for Tranche 2.1 projects at this time.
The following table shows our actual and expected capital expenditures at our Regulated Operating Subsidiaries:
Actual Capital Forecasted
Expenditures for the Capital
Six Months Ended Expenditures
(In millions of USD) June 30, 2026 2026 - 2030
Expenditures for property, plant and equipment (a) $ 739 $ 7,291
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(a)Amounts represent the cash payments to acquire or construct property, plant and equipment, as presented in the condensed consolidated statements of cash flows. These amounts exclude non-cash additions to property, plant and equipment for the AFUDC equity as well as accrued liabilities for construction, labor and materials that have not yet been paid.
Our long-term growth plan includes ongoing investments in our current regulated transmission systems and the identification of incremental strategic projects primarily located in and around our service territories. In addition, evolving technologies such as data centers, with increasing energy demand and load capacity requirements, will require electric transmission systems to adapt to future demands at a scale and pace beyond the historical trends of development. Excluding other factors that may impact network transmission rates, load
increases driven by economic development and new customer interconnections are expected to put downward pressure on future rates.
On April 7, 2026, our Regulated Operating Subsidiaries, along with a coalition of other TOs that operate in the MISO and SPP RTOs, filed a complaint at the FERC under Section 206 of the Federal Power Act related to the FERC Order No. 1000 competitive solicitation process for electric transmission projects in the MISO and SPP regions. The complaint seeks to (1) exempt from the competitive solicitation process transmission projects in the MISO and SPP regions that facilitate generation or load additions, or (2) suspend competitive solicitations for certain categories of projects in these regions for the next five years. It is requested that the proposed change apply prospectively from the date of the complaint. While there is no stipulated timeline for the FERC to act, the complainants have requested that the FERC take action in response to the complaint by September 2026.
Our capital expenditure forecast is subject to continuing review and modification. Investments in property, plant and equipment could be lower than expected due to a variety of factors, as discussed in "Item 1A. Risk Factors" of our Form 10-K for the year ended December 31, 2025.
Results of Operations
Three Months Ended Percentage Six Months Ended Percentage
June 30, Increase Increase June 30, Increase Increase
(In millions of USD) 2026 2025 (Decrease) (Decrease) 2026 2025 (Decrease) (Decrease)
OPERATING REVENUES
Transmission and other services $ 497 $ 451 $ 46 10 % $ 930 $ 848 $ 82 10 %
Formula Rate true-up (22) (7) (15) (214) % 18 36 (18) (50) %
Total operating revenues 475 444 31 7 % 948 884 64 7 %
OPERATING EXPENSES
Operation and maintenance 33 30 3 10 % 61 59 2 3 %
General and administrative 46 34 12 35 % 95 74 21 28 %
Depreciation and amortization 93 86 7 8 % 184 170 14 8 %
Taxes other than income taxes 48 47 1 2 % 98 92 6 7 %
Total operating expenses 220 197 23 12 % 438 395 43 11 %
OPERATING INCOME 255 247 8 3 % 510 489 21 4 %
OTHER EXPENSES (INCOME)
Interest expense, net 104 91 13 14 % 197 180 17 9 %
Allowance for equity funds used during construction (15) (10) (5) (50) % (28) (20) (8) (40) %
Other expenses (income), net (8) (3) (5) (167) % (10) (5) (5) (100) %
Total other expenses (income) 81 78 3 4 % 159 155 4 3 %
INCOME BEFORE INCOME TAXES 174 169 5 3 % 351 334 17 5 %
INCOME TAX PROVISION 39 42 (3) (7) % 79 80 (1) (1) %
NET INCOME $ 135 $ 127 $ 8 6 % $ 272 $ 254 $ 18 7 %
Operating Revenues
The following tables set forth the components of and changes in operating revenues for the three and six months ended June 30, 2026 and 2025, which included revenue accruals and deferrals, as described in Note 5 to the condensed consolidated interim financial statements:
Three Months Ended
June 30, Percentage
2026 2025 Increase Increase
(In millions of USD) Amount Percentage Amount Percentage (Decrease) (Decrease)
Network revenues (a) $ 334 70 % $ 310 70 % $ 24 8 %
Regional cost sharing revenues (a) 116 24 % 109 25 % 7 6 %
Point-to-point 5 1 % 6 1 % (1) (17) %
Scheduling, control and dispatch (a) 4 1 % 4 1 % - - %
Other 16 4 % 15 3 % 1 7 %
Total $ 475 100 % $ 444 100 % $ 31 7 %
Six Months Ended
June 30, Percentage
2026 2025 Increase Increase
(In millions of USD) Amount Percentage Amount Percentage (Decrease) (Decrease)
Network revenues (a) $ 673 71 % $ 623 70 % $ 50 8 %
Regional cost sharing revenues (a) 229 24 % 219 25 % 10 5 %
Point-to-point 16 2 % 15 2 % 1 7 %
Scheduling, control and dispatch (a) 9 1 % 8 1 % 1 13 %
Other 21 2 % 19 2 % 2 11 %
Total $ 948 100 % $ 884 100 % $ 64 7 %
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(a)Includes a portion of Formula Rate true-up revenue.
Operating revenues for the three and six months ended June 30, 2026 increased compared to the same periods in 2025 primarily due to higher rate base associated with higher balances of property, plant and equipment and resulting return and increased recoverable operating expenses.
Operating Expenses
General and administrative
General and administrative expense increased during the three and six months ended June 30, 2026 compared to the same periods in 2025 primarily due to higher compensation-related costs, driven largely by increased share-based compensation and personnel additions, as well as higher professional services fees.
Other Expenses (Income)
Interest Expense, net
Interest expense, net increased during the three and six months ended June 30, 2026 compared to the same periods in 2025 primarily due to higher overall debt balances and higher interest rates on long-term debt issuances. The increase was partially offset due to lower balances of commercial paper and borrowings under the revolving credit agreement.
Allowance for equity funds used during construction
AFUDC equity increased during the three and six months ended June 30, 2026 compared to the same periods in 2025 primarily due to higher balances of construction work in process eligible for AFUDC equity.
Other expenses (income), net
Other expenses (income), net increased during the three and six months ended June 30, 2026 compared to the same periods in 2025 primarily due to an increase in interest income.
Liquidity and Capital Resources
We expect to maintain our approach of funding our future capital requirements with cash provided by operations at our Regulated Operating Subsidiaries, future issuances under our commercial paper program and amounts available under our revolving credit agreement (the terms of which are described in Note 6 to the condensed consolidated interim financial statements). In addition, we may secure fixed debt funding in the capital markets, although we can provide no assurance that we will be able to obtain financing on favorable terms or at all. As market conditions warrant, we may also from time to time repurchase debt securities issued by us in the open market, in privately negotiated transactions, by tender offer or otherwise. We expect that our capital requirements will arise principally from our need to:
•Fund capital expenditures at our Regulated Operating Subsidiaries. Our plans with regard to property, plant and equipment investments are described in detail above under "- Capital Investment and Operating Results Trends."
•Fund our debt service requirements, including principal repayments and periodic interest payments.
•Fund working capital requirements.
In addition to the expected capital requirements above, any adverse determinations or settlements relating to the regulatory matters or contingencies described in Notes 5 and 12 to the condensed consolidated interim financial statements would result in additional capital requirements. Our contractual obligations are described in our Form 10-K for the year ended December 31, 2025. There have been no material changes to our contractual obligations since December 31, 2025, other than the items described in Note 6 to the condensed consolidated interim financial statements.
We believe that we have sufficient capital resources to meet our currently anticipated short-term (within twelve months) needs. However, we rely on both internal and external sources of liquidity to provide working capital and fund capital investments. An extended period of economic disruption could impact our ability to access the capital markets requiring us to seek alternative forms of financing which could negatively impact our liquidity and capital resources. Additionally, we will continue to monitor and assess interest rates and the lending environment to inform our funding strategy, including the utilization of various types of debt instruments.
ITC Holdings' sources of cash are dividends and other payments received by us from our Regulated Operating Subsidiaries and any of our other subsidiaries as well as the proceeds raised from the sale of our debt securities. Each of our Regulated Operating Subsidiaries, while wholly-owned by ITC Holdings, is legally distinct from ITC Holdings and has no obligation, contingent or otherwise, to make funds available to ITC Holdings.
To address our short-term (within twelve months) cash requirements, we expect to utilize cash provided by operations at our Regulated Operating Subsidiaries, future issuances under our commercial paper program, amounts available under our revolving credit agreement and long-term debt financing, as needed. As of June 30, 2026, we had consolidated indebtedness under our revolving credit agreement of $222 million, with unused capacity of $778 million. Additionally, ITC Holdings did not have any commercial paper issued and outstanding as of June 30, 2026. See Note 6 to the condensed consolidated interim financial statements for a discussion of the commercial paper program and our revolving credit agreement.
To address our future long-term capital requirements, we expect that we will need to obtain additional long-term debt financing. Certain of our capital projects could be delayed if we experience difficulties in accessing capital. We expect to be able to obtain such additional financing, as needed, in amounts and upon terms that will be acceptable to us due to our strong credit ratings and our historical ability to obtain financing.
Credit Ratings
Credit ratings by nationally recognized statistical rating agencies are an important component of our liquidity profile. Credit ratings relate to our ability to issue debt securities and the cost to borrow money and should not be viewed as a recommendation to buy, sell or hold securities. Ratings are subject to revision or withdrawal at any time and each rating should be evaluated independently of any other rating. An explanation of these ratings may be obtained from the respective rating agency. Additional information related to our credit ratings and outlook reported by rating agencies is included in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation - Credit Rating" of our Form 10-K for the year ended December 31, 2025.
Covenants
Our debt instruments contain numerous financial and operating covenants that place significant restrictions on certain transactions, such as incurring additional indebtedness, engaging in sale and lease-back transactions, creating liens or other encumbrances, entering into mergers, consolidations, liquidations or dissolutions, creating or acquiring subsidiaries and selling or otherwise disposing of all or substantially all of our assets. In addition, the covenants require us to meet certain financial ratios, such as maintaining certain debt to capitalization ratios and certain funds from operations to debt levels. As of June 30, 2026, we were not in violation of any debt covenant. In the event of a downgrade in our credit ratings, none of the covenants would be directly impacted, although the borrowing costs under our revolving credit agreement may increase.
Cash Flows
Six Months Ended Percentage
June 30, Increase Increase
(In millions of USD) 2026 2025 (Decrease) (Decrease)
Cash flows provided by (used in):
Operating activities $ 424 $ 346 $ 78 23 %
Investing activities (736) (653) 83 13 %
Financing activities 339 303 36 12 %
Net increase (decrease) in cash, cash equivalents and restricted cash $ 27 $ (4)
Cash Flows From Operating Activities
Net cash provided by operating activities increased primarily due to an increase in cash received from operating revenues of $86 million, a decrease in interest paid of $9 million, an increase of $4 million due to the settlement of interest rate swaps and an increase in interest income of $4 million during the six months ended June 30, 2026 compared to the same period in 2025. This increase was partially offset by an increase in payments pursuant to our long-term incentive plans of $15 million and an increase in property taxes paid of $6 million and timing differences in various receipts and payments during the six months ended June 30, 2026 compared to the same period in 2025.
Cash Flows From Investing Activities
Net cash used in investing activities increased primarily due to an increase in capital expenditures during the six months ended June 30, 2026 compared to the same period in 2025.
Cash Flows From Financing Activities
Net cash provided by financing activities increased primarily due to an increase in issuances of long-term debt of $1,499 million and an increase in net refundable deposits from generators for transmission network upgrades of $29 million during the six months ended June 30, 2026 compared to the same period in 2025. This increase was partially offset by an increase in net repayments under our revolving credit agreement of $592 million, an increase in net repayments of commercial paper of $452 million, an increase in repayments of long-term debt of $400 million, an increase in dividends paid to ITC Investment Holdings of $35 million and other financing activities, primarily an increase in deferred financing fees, during the six months ended June 30, 2026 compared to the same period in 2025.
Critical Accounting Estimates
The condensed consolidated interim financial statements are prepared in accordance with GAAP. The preparation of these condensed consolidated interim financial statements requires the application of appropriate technical accounting rules and guidance, as well as the use of estimates. The application of these policies requires judgments regarding future events.
These estimates and judgments, in and of themselves, could materially impact the condensed consolidated interim financial statements and disclosures based on varying assumptions, as future events rarely develop exactly as forecasted, and even the best estimates routinely require adjustment.
The accounting policies discussed in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Estimates" of our Form 10-K for the year ended December 31, 2025 are considered by management to be the most important to an understanding of the condensed consolidated interim financial statements because of their significance to the portrayal of our financial condition and results of operations or because their application places the most significant demands on management's judgment and estimates about the effect of matters that are inherently uncertain. There have been no material changes to that information during the six months ended June 30, 2026.
Recent Accounting Pronouncements
See Note 2 to the condensed consolidated interim financial statements for information related to recently issued FASB guidance.
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