Discontinued and Disposed Operations

9 Months Ended

Sep. 30, 2025

Discontinued Operations and Disposal Groups [Abstract]

4. Discontinued and Disposed Operations

Discontinued Operations

On October 8, 2024, the Company completed the sale of the ESG business, an operating company within the Engineered Products segment, to Terex Corporation for total preliminary consideration, net of cash transferred, of $2.0 billion, subject to post-closing adjustments. The ESG sale qualifies for discontinued operations reporting because its disposal represented a strategic shift with a major effect on the Company's operations and financial results. As a result, the Company has classified the results of operations as discontinued operations for the three and nine months ended September 30, 2025, and 2024 in the condensed consolidated statements of earnings and for the nine months ended September 30, 2025, and 2024 in the condensed consolidated statements of cash flows. During the three months ended September 30, 2025, other post-closing adjustments of $1,640 ($1,296 after-tax) were recorded resulting in a loss from discontinued operations, net in the condensed consolidated statements of earnings. During the nine months ended September 30, 2025, net working capital adjustments of $9,796 ($7,739 after-tax) and other post-closing adjustments of $3,837 ($3,043 after-tax) were recorded resulting in a loss from discontinued operations, net of $10,782 in the condensed consolidated statements of earnings.

In June 2025, a jury returned a verdict against the ESG business for approximately $58.9 million in connection with litigation involving alleged breach of contract and inducement of breach of fiduciary duty claims arising from certain product development efforts. ESG has filed post-trial motions and, if necessary, will file an appeal with the U.S. Court of Appeals for the Seventh Circuit. The Company has not recognized an expense in connection with this matter because it does not currently believe a loss is probable.

Summarized results of the Company's discontinued operations are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024			2025		2024
Revenue	$	—	$	231,777		$	—	$	671,479
Cost of goods and services	—		164,115			—		474,705
Gross profit	—		67,662			—		196,774
Selling, general and administrative expenses	—		24,318			—		67,599

Operating earnings	—		43,344			—		129,175
Loss on disposition	1,640		—			13,633		—

Other (income) expense, net	—		(1)			—		696
(Loss) earnings from discontinued operations before provision for income taxes	(1,640)		43,345			(13,633)		128,479
(Benefit) provision for income taxes	(344)		9,141			(2,851)		28,921
(Loss) earnings from discontinued operations, net	$	(1,296)	$	34,204		$	(10,782)	$	99,558

2025 Dispositions

There were no material dispositions in 2025.

2024 Dispositions

On March 31, 2024, the Company completed the sale of the De-Sta-Co business, an operating company within the Engineered Products segment, for total consideration, net of cash transferred, of $674,727. This sale resulted in a preliminary pre-tax gain on disposition of $529,201 ($414,372 after-tax) included within the condensed consolidated statements of earnings for the nine months ended September 30, 2024. The sale did not meet the criteria to be classified as a discontinued operation, as it did not represent a strategic shift that would have a major effect on operations and financial results.

On September 30, 2024, a minority owned equity method investment held within the Climate & Sustainability Technologies segment was sold and the Company received its proportionate share of the proceeds amounting to $92,962. The sale resulted in

a preliminary pre-tax gain of $68,712, subject to customary post-closing adjustments and included within the condensed consolidated statements of earnings for the three and nine months ended September 30, 2024.