ERNST HOTEL SUPPLY, CO INC.

Contents Part II We also award restricted AB Holding Units in connection with certain employment and separation agreements, as well as relocation-related performance awards, with vesting schedules generally ranging between two and ten years. Grant details related to these awards is as follows: 2025 2024 2023 (in millions excluding share prices) Restricted Units Awarded 1.1 1.2 0.5 Grant Date Fair Value Range $35.90 - $42.13 $28.46 - $37.26 $27.86 - $38.58 Compensation Expense $ 19.2 $ 17.6 $ 30.1 The fair value of the restricted AB Holding Units is amortized over the requisite service period as compensation expense. Changes in unvested restricted AB Holding Units during 2025 are as follows: AB Holding Units Weighted Average Grant Date Fair Value per AB Holding Unit Unvested as of December

of a gain on contingent payment arrangements of $121.0 million in the prior year and higher promotion and servicing expense of $76.8 million, partially offset by lower general and administrative expenses of $42.2 million, lower employee compensation and benefits expense of $11.3 million and lower interest on borrowings of $15.2 million. The change in contingent payment arrangements was primarily due to the recognition of a gain of $128.5 million in 2024 related to a fair value remeasurement of the contingent payment liability associated with our acquisition of AB CarVal in 2022. Our operating income decreased $73.6 million, or 6.5%, to $1.1 billion compared to 2024 and our operating margin decreased to 23.0% in 2025 from 24.7% in 2024. Market Environment U.S. Equities U.S. stocks finished

a defined contribution benefit plan, the Tractor Supply Company 401(k) Retirement Savings Plan (the “401(k) Plan”), which provides retirement benefits for eligible employees. The Company matches (in cash) 100 % of the employee’s elective contributions up to 3 % of eligible compensation plus 50 % of the employee’s elective contributions from 3 % to 6 % of eligible compensation. In no event shall the total Company match made on behalf of the employee exceed 4.5 % of the employee’s eligible compensation. All current contributions are immediately vested. Company contributions to the 401(k) Plan were approximately $ 22.1 million, $ 20.1 million, and $ 18.8 million during fiscal 2025, 2024, and 2023, respectively. Note 12 – Commitments and Contingencies Contractual Commitments At December 27, 2

pected term will increase compensation expense. Forfeiture Rate — This is the estimated percentage of options granted that are expected to be forfeited or canceled before becoming fully vested. This estimate is based on historical experience. An increase in the forfeiture rate will decrease compensation expense. Dividend Yield — This is the estimated dividend yield for the weighted average expected term of the option granted. An increase in the dividend yield will decrease compensation expense. 58 Table of Contents The Company issues shares for options when exercised. A summary of stock option activity is as follows: Stock Option Activity Options Weighted Average Exercise Price Weighted Average Fair Value Weighted Average Remaining Contractual Term Aggregate Intrinsic Value ( in thousands)

e expressed as a percent of net sales. Fiscal Year 2025 2024 Net sales 100.00 % 100.00 % Cost of merchandise sold (a) 63.58 63.74 Gross margin (a) 36.42 36.26 Selling, general and administrative expenses (a) 23.79 23.39 Depreciation and amortization 3.18 3.00 Operating income 9.45 9.86 Interest expense, net 0.45 0.37 Income before income taxes 9.01 9.49 Income tax expense 1.95 2.09 Net income 7.06 % 7.40 % (a) Our gross margin amounts may not be comparable to those of other retailers since some retailers include all of the costs related to their distribution facility network in cost of merchandise sold and others (like our Company) exclude a portion of these distribution facility network costs from gross margin and instead include them in Selling, general, and administrative expenses; refe