High Yield Toolkit: Industrials & Services Weekly: 75 earnings, WNC downgrade to UW, REZI and NVRI spin-off updates

Research evidence excerpt

High Yield Toolkit: Industrials & Services Weekly: 75 earnings, WNC downgrade to UW, REZI and NVRI spin-off updates

n of 4.5% unsecured bonds due

October 15, 2028.

As a result, we think the expected tariff/pricing benefit in WNC’s prior OW thesis is less

compelling, while the risk rises that any 2027 recovery is met with incremental

domestic supply from a strong competitor rather than improved pricing & market

recovery. Against a still weak order backdrop, we also think WNC’s expected 2026 FCF

burn of >$50mn is unlikely to improve meaningfully in the near term, leaving the

shorter refinancing window a significant risk; we therefore downgrade the notes to UW.

Company-Specific News (Alphabetical)

ADT (ADT/PRSESE)

04/24/2026: ADT reports it became aware on 04/20/2026 of unauthorized access to

certain cloud-based environments and promptly terminated the access, activated its

incident response plan, launched an investigation, engaged third-party cybersecurity

experts, and notified law enforcement. The company said only limited customer and

prospective customer data was accessed and it does not currently believe the incident is

reasonably likely to materially affect its financial condition, results, or ongoing

operations.

04/27/2026: Moody’s reports ADT’s recent cybersecurity incident is credit-negative

because it highlights ongoing execution and operational risk around cybersecurity and

data protection. Moody’s said the incident has no immediate impact on ADT’s ratings

and is not expected to materially affect them at this time.

04/30/2026: ADT reported 1Q’26 revenue of $1,279.0mn, +0.9% y/y and 1% above

consensus of $1,269.3mn (4 est). Monitoring revenue was $359mn and flat y/y, with

gross revenue attrition of 13.1% and revenue payback of 2.3 years, which management