XML 44 R27.htm IDEA: XBRL DOCUMENT v3.25.4
Segment Financial Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Financial Information Segment Financial Information
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 special applications.
Corporate includes income and expense that cannot be directly allocated to the business segments or are managed on the corporate level. This includes Interest and other financial expense, net, 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, stock-based compensation, and non-recurring items (such as, restructuring expenses, Loss (recovery) due to misappropriation of assets, net, Goodwill impairment, 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 are as follows:
RubberSpecialtyCorporateTotal
(In millions)
2025
Net sales from external customers$1,188.2 $618.5 $— $1,806.7 
Less:
Cost of Sales969.2 477.7 — 1,446.9 
Selling, general and administrative expenses139.5 90.1 1.1 230.7
Loss (recovery) due to misappropriation of assets, net— — (6.9)(6.9)
Goodwill impairment32.3 48.5 — 80.8 
Other segment items13.8 13.9 — 27.7 
Add:
LTIP and other non-operating charges6.6 6.5 1.1 14.2 
Loss (recovery) due to misappropriation of assets, net— — (6.9)(6.9)
Goodwill impairment32.3 48.5— 80.8
Equity in earnings of affiliated companies, net of tax0.5 — — 0.5 
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment81.7 50.2 — 131.9 
Adjusted EBITDA$154.5 $93.5 —$248.0 
Assets$1,093.7 $688.6 $125.3 $1,907.6 
Capital expenditures66.0 95.0 — 161.0 
2024
Net sales from external customers$1,231.2 $646.3 $— $1,877.5 
Less:
Cost of Sales954.3 494.4— 1448.7
Selling, general and administrative expenses152.1 84.71.0 237.8
Loss (recovery) due to misappropriation of assets, net— — 59.3 59.3
Other segment items14.3 15.7(1.0)29.0
Add:
LTIP and other non-operating charges7.2 7.1 — 14.3 
Loss (recovery) due to misappropriation of assets, net— — 59.3 59.3 
Equity in earnings of affiliated companies, net of tax0.6 — — 0.6 
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment75.8 49.5 — 125.3 
Adjusted EBITDA$194.1 $108.1 —$302.2 
Assets$1,047.8 $698.3 $111.2 $1,857.3 
Capital expenditures102.1 104.6 — 206.7 
2023
Net sales from external customers$1,283.3 $610.6 $— $1,893.9 
Less:
Cost of Sales992.6 450.3— 1442.9
Selling, general and administrative expenses135.0 85.71.2 221.9
Other segment items12.2 13.5(1.9)23.8
Add:
LTIP and other non-operating charges7.2 7.0 (0.7)13.5 
Equity in earnings of affiliated companies, net of tax0.5 — — 0.5 
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment70.4 42.6 — 113.0 
Adjusted EBITDA$221.6 $110.7 —$332.3 
Assets$1,014.3 $703.4 $115.7 $1,833.4 
Capital expenditures99.5 73.3 — 172.8 
Other segment items—Other segment items for each reportable segment includes Research and development costs and Other expense (income), net.
A reconciliation of Adjusted EBITDA to Income from continuing operations before income taxes for each of the periods presented is as follows:
202520242023
(In millions)
Income (loss) before earnings in affiliated companies and income taxes$(34.8)$53.3 $163.3 
LTIP and other non-operating charges14.2 14.3 13.5 
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment131.9 125.3 113.0 
Loss (recovery) due to misappropriation of assets, net
Misappropriation of assets, net(9.2)55.7 — 
Professional fees related to misappropriation of assets2.3 3.6 — 
Goodwill impairment80.8 — — 
Equity in earnings of affiliated companies, net of tax0.5 0.6 0.5 
Interest and other financial expense, net62.3 49.4 50.9 
Reclassification of actuarial (gains)/losses from AOCI— — (8.9)
Adjusted EBITDA$248.0 $302.2 $332.3 
LTIP and other non-operating charges include the following:
202520242023
(In millions)
LTIP$13.6 $15.3 $15.4 
Environmental reserves— — (2.2)
Other non-operating0.6 (1.0)0.3 
$14.2 $14.3 $13.5 
Geographic information:
Net salesYears Ended December 31,
202520242023
(In millions)
Americas$607.3 $622.5 $657.4 
USA407.7 430.0 470.4 
Brazil157.7 145.5 145.4 
Rest of Americas41.9 47.0 41.6 
EMEA794.9 831.6 804.5 
Germany165.4 168.3 189.5 
Czech Republic74.3 57.7 49.4 
Italy82.1 83.6 84.8 
Poland56.3 54.7 59.9 
South Africa52.4 66.8 69.5 
Spain47.6 53.3 52.8 
Rest of EMEA316.8 347.2 298.6 
APAC404.5 423.4 432.0 
China184.2 187.0 178.3 
Republic of Korea128.9 130.4 139.0 
Rest of Asia91.4 106.0 114.7 
Total$1,806.7 $1,877.5 $1,893.9 
The Company determines its reportable geographic regions based on the location of the customer. For 2025, due to a change in geographic sales concentration, Czech Republic and Poland are now presented separately, and Turkey and France are included within the ‘Rest of EMEA’ line item. To maintain comparability, prior period amounts in the table above have been reclassified to conform to the current year presentation.
For the years ended December 31, 2025 and 2023, two customers in the Rubber segment, aggregating to approximately $459.4 million and $466.5 million, respectively, accounted for 10% or more of consolidated revenue. For the year ended December 31, 2024, one customer in the Rubber segment, aggregating to approximately $280.1 million, accounted for 10% or more of consolidated revenue.
Long-lived tangible assets(1)
December 31
20252024
(In millions)
Germany$197.9 $168.6 
Sweden29.924.5
Italy65.462.1
Poland26.122.1
Rest of Europe25.823.1
Subtotal Europe345.1300.4
United States600.8530.1
South Korea95.698.2
South Africa30.827.5
Brazil18.317.7
China104.7108.9
Other0.10.1
Total$1,195.4 $1,082.9 
(1) Long-lived assets include property, plant and equipment, net and right-of-use assets, net.