Financial Information by Segment

9 Months Ended

Sep. 30, 2025

Segment Reporting [Abstract]

Financial Information by Segment

Financial Information by Segment

Segment information

We disclose the results of each of our operating segments in accordance with ASC 280, Segment Reporting. We manage our business in two operating segments as follows:

•Rubber Carbon Black—Used in the reinforcement of rubber in tires and mechanical rubber goods, and

•Specialty Carbon Black—Used for protection, colorization and conductivity in coatings, polymers, batteries, printing and other special applications.

Corporate includes income and expenses that cannot be directly allocated to the business segments or that are managed at the corporate level. This includes finance income and expenses, taxes and items with less bearing on the underlying core business.

Our operations are managed by senior executives who report to our Chief Executive Officer (“CEO”), the chief operating decision maker (“CODM”). Discrete financial information is available for each of the segments, and the CODM uses operating results of each operating segment for performance evaluation and resource allocation.

Our CODM uses Adjusted EBITDA as the primary measure for reviewing our segment profitability. We define Adjusted EBITDA as Income from operations before depreciation and amortization, share-based compensation, and non-recurring items (such as restructuring expenses, legal settlements gains, etc.) plus Earnings in affiliated companies, net of tax.

The CODM does not review reportable segment asset or liability information for purposes of assessing performance or allocating resources.

Segment operating results for the three months ended September 30, 2025 and 2024 are as follows:

	Rubber		Specialty		Corporate		Total
	(In millions)
2025
Net sales from external customers	$	290.9	$	160.0	$	—	$	450.9
Less:
Cost of Sales	237.9		127.4		—		365.3
Selling, general and administrative expenses	34.1		23.2		0.2		57.5
Loss (recovery) due to misappropriation of assets, net	—		—		(7.3)		(7.3)
Goodwill impairment	32.3		48.5		—		80.8
Other segment items	4.2		4.1		—		8.3
Add:
Equity in earnings of affiliated companies, net of tax	0.5		—		—		0.5
LTIP and other non-operating charges	1.8		1.7		0.2		3.7
Loss (recovery) due to misappropriation of assets, net	—		—		(7.3)		(7.3)
Goodwill impairment	32.3		48.5		—		80.8
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment	19.1		14.6		—		33.7
Adjusted EBITDA	$	36.1	$	21.6	$	—	$	57.7
Capital expenditures	15.5		25.4		—		40.9
2024
Net sales from external customers	$	300.9	$	162.5	$	—	$	463.4
Less:
Cost of Sales	230.0		125.9		—		355.9
Selling, general and administrative expenses	35.9		21.7		0.3		57.9
Loss (recovery) due to misappropriation of assets, net	—		—		60.7		60.7
Other segment items	2.2		3.1		(1.1)		4.2
Add:
Equity in earnings of affiliated companies, net of tax	0.2		—		—		0.2
LTIP and other non-operating charges	1.6		2.9		(0.8)		3.7
Loss (recovery) due to misappropriation of assets, net	—		—		60.7		60.7
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment	18.3		12.5		—		30.8
Adjusted EBITDA	$	52.9	$	27.2	$	—	$	80.1
Capital expenditures	23.7		24.2		—		47.9

Segment operating results for the nine months ended September 30, 2025 and 2024 are as follows:

	Rubber		Specialty		Corporate		Total
	(In millions)
2025
Net sales from external customers	$	916.2	$	478.8	$	—	$	1,395.0
Less:
Cost of Sales	739.3		373.6		—		1,112.9
Selling, general and administrative expenses	104.4		68.4		0.8		173.6
Loss (recovery) due to misappropriation of assets, net	—		—		(6.5)		(6.5)
Goodwill impairment	32.3		48.5		—		80.8
Other segment items	12.1		12.5		—		24.6
Add:
Equity in earnings of affiliated companies, net of tax	1.6		—		—		1.6
LTIP and other non-operating charges	4.6		4.6		0.8		10.0
Loss (recovery) due to misappropriation of assets, net	—		—		(6.5)		(6.5)
Goodwill impairment	32.3		48.5		—		80.8
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment	59.2		38.0		—		97.2
Adjusted EBITDA	$	125.8	$	66.9	$	—	$	192.7
Assets	$	1,109.9	$	701.6	$	152.4	$	1,963.9
Capital expenditures	46.4		65.9		—		112.3
2024
Net sales from external customers	$	944.4	$	498.9	$	—	$	1,443.3
Less:
Cost of Sales	722.7		381.1		—		1,103.8
Selling, general and administrative expenses	113.5		65.5		0.7		179.7
Loss (recovery) due to misappropriation of assets, net	—		—		60.7		60.7
Other segment items	9.7		11.4		(1.1)		20.0
Add:
Equity in earnings of affiliated companies, net of tax	0.5		—		—		0.5
LTIP and other non-operating charges	5.3		5.3		(0.4)		10.2
Loss (recovery) due to misappropriation of assets, net	—		—		60.7		60.7
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment	53.1		36.9		—		90.0
Adjusted EBITDA	$	157.4	$	83.1	$	—	$	240.5
Assets	$	1,101.5	$	730.5	$	164.3	$	1,996.3
Capital expenditures	68.2		67.5		—		135.7

Other segment items—Other segment items for each reportable segment includes Research and Development costs and Other expense (income), net.

A reconciliation of Income before earnings in affiliated companies and income taxes to Adjusted EBITDA for each of the periods presented is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(In millions)
Income (loss) before earnings in affiliated companies and income taxes	$	(68.1)	$	(31.2)	$	(37.6)	$	38.3
LTIP and other non-operating charges	3.7		3.7		10.0		10.2
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment	33.7		30.8		97.2		90.0
Loss (recovery) due to misappropriation of assets, net
Misappropriation of assets, net	(7.3)		59.2		(7.3)		59.2
Professional fees related to misappropriation of assets	—		1.5		0.8		1.5
Goodwill impairment	80.8		—		80.8		—
Equity in earnings of affiliated companies, net of tax	0.5		0.2		1.6		0.5
Interest and other financial expense, net	14.4		15.9		47.2		40.8
Adjusted EBITDA	$	57.7	$	80.1	$	192.7	$	240.5

LTIP and other non-operating charges include the following:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(In millions)
Long term incentive plan	$	3.7	$	4.8	$	10.0	$	11.3
Other non-operating	—		(1.1)		—		(1.1)
LTIP and other non-operating charges	$	3.7	$	3.7	$	10.0	$	10.2