Income Taxes

6 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes 

Income tax expense from continuing operations for the three and six months ended June 30, 2025 was $3.6 million and $11.6 million, respectively, compared with $10.0 million and $17.9 million for the three and six months ended June 30, 2024. The decrease in the income tax expense for the three and six months ended June 30, 2025, compared with the three and six months ended June 30, 2024, is primarily due to lower business performance in HE in various countries and in Rail in the U.S. In addition, the decrease in income tax expense for the six months ended June 30, 2025 was attributable to a $3.3 million net gain on sale of assets in Corporate in 2024 that did not reoccur in 2025 and a $0.8 million tax benefit from the release of the Company's uncertain tax position reserve in certain foreign jurisdictions due to statute of limitation expiration, partially offset by a $5.7 million out-of-period adjustment recorded in the first quarter of 2025. See Note 1, Basis for Presentation for additional information on the out-of-period adjustment.

The Company has historically calculated its quarterly tax provision based on its best estimate of the full year tax rate applicable to the quarter. For the three and six months ended June 30, 2025, due to the insignificant amount of pre-tax book loss relative to the size of permanent book-tax differences and a varying net income/(loss) pattern projected for the year, the Company’s tax provision estimate was determined using an actual year-to-date method. In the prior year, the estimate was based on the forecasted full year rate.

The reserve for uncertain tax positions on June 30, 2025 and December 31, 2024 was $6.9 million and $3.1 million, respectively, including interest and penalties. Within the next twelve months, it is reasonably possible that $0.6 million in unrecognized income tax benefits will be recognized upon settlement of tax examinations and the expiration of various statutes of limitations.

On July 4, 2025, President Trump signed into law the legislation formally titled “An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14” (“the Act”), commonly referred to as the One Big Beautiful Bill Act. The Company is currently assessing the provisions of the Act and the potential impact on its financial statements cannot be reasonably estimated at this time.