Business Segments

6 Months Ended

Jun. 30, 2026

Segment Reporting [Abstract]

Business Segments

Note 18 – Business Segments

The FCEP segment produces forged hardened steel rolls, cast rolls and forged engineered products (“FEP”). Forged hardened steel rolls are used primarily in hot and cold rolling mills by producers of steel, aluminum and other metals. Cast rolls, which are produced in a variety of iron and steel qualities, are used mainly in hot strip mills, medium/heavy section mills, roughing mills, and plate mills. FEP principally are sold to customers in the steel distribution market, oil and gas industry and aluminum and plastic extrusion industries. The segment has operations in the United States, Sweden, Slovenia, and equity interests in two joint venture companies in China. Collectively, the segment primarily competes with European, Asian and North American and South American companies in both domestic and foreign markets and distributes a significant portion of its products through sales offices located throughout the world.

The ALP segment includes Aerofin, Buffalo Air Handling and Buffalo Pumps, all divisions of Air & Liquid. Aerofin produces custom-engineered finned tube heat exchange coils and related heat transfer products for a variety of industries including original equipment manufacturers and commercial, nuclear power generation and industrial manufacturing. Buffalo Air Handling produces large custom-designed air handling systems for institutional (e.g., hospital, university), pharmaceutical and general industrial building markets. Buffalo Pumps manufactures centrifugal pumps for the fossil-fueled power generation, marine defense and industrial refrigeration industries. The segment has operations in Virginia and New York with headquarters in Carnegie, Pennsylvania. The segment utilizes an independent group of sales offices located throughout the United States and Canada.

Net sales by product line for the three and six months ended June 30, 2026 and 2025 are outlined below.

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net sales:
Forged and Cast Engineered Products
Forged and cast mill rolls	$	61,401	$	72,227	$	127,769	$	140,849
FEP		5,910		5,682		10,351		9,347
Forged and Cast Engineered Products		67,311		77,909		138,120		150,196
Air and Liquid Processing
Heat exchange coils		12,555		11,299		25,623		22,824
Air handling systems		11,904		13,882		24,947		24,510
Centrifugal pumps		11,148		10,014		22,555		19,839
Air and Liquid Processing		35,607		35,195		73,125		67,173
Total Reportable Segments	$	102,918	$	113,104	$	211,245	$	217,369

The accounting policies for each segment are the same as those described in Item 8, Financial Statements and Supplementary Data, in Part II of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2025. The Corporation's Chief Executive Officer is the Corporation’s CODM.

The Corporation measures each segment’s profitability based on income (loss) from operations, which excludes Corporate costs, interest expense and other income and expense items. Along with other measures, the CODM uses segment income (loss) from operations when assessing segment performance and when making decisions to allocate financial resources between segments, primarily through periodic budgeting and segment performance reviews.

Summarized financial information for the Corporation’s reportable segments is shown in the following tables.

	Three Months Ended June 30,
	2026							2025
	FCEP		ALP		Total			FCEP(6)			ALP		Total
Net sales	$	67,311	$	35,607	$	102,918		$	77,909		$	35,195	$	113,104
Less:(1)
Cost of products sold (excluding depreciation and amortization)(2)		54,215		26,460					64,437			27,544
Selling and administrative		5,284		3,879					6,486			3,445
Depreciation and amortization		3,863		350					5,084			284
Severance charge		—		—					5,854			—
Loss on disposal of assets		28		—					11			—
Segment income (loss) from operations	$	3,921	$	4,918	$	8,839		$	(3,963	)	$	3,922	$	(41	)
Reconciliation to income (loss) before income taxes
Corporate costs(4)						(3,767	)							(3,037	)
Interest expense						(2,791	)							(2,825	)
Other income (expense) - net(5)						545								(225	)
Income (loss) before income taxes					$	2,826							$	(6,128	)

	Six Months Ended June 30,
	2026							2025
	FCEP		ALP		Total			FCEP(6)			ALP		Total
Net sales	$	138,120	$	73,125	$	211,245		$	150,196		$	67,173	$	217,369
Less:(1)
Cost of products sold (excluding depreciation and amortization)(2)		113,406		54,024					122,050			52,035
Selling and administrative		11,204		8,114					12,871			7,170
Depreciation and amortization		7,787		677					9,452			552
Deconsolidation Charge(3)		875		—					—			—
Severance charge		—		—					5,854			—
Loss on disposal of assets		21		—					27			—
Segment income from operations	$	4,827	$	10,310	$	15,137		$	(58	)	$	7,416	$	7,358
Reconciliation to income (loss) before income taxes
Corporate costs(4)						(7,503	)							(6,586	)
Interest expense						(5,514	)							(5,551	)
Other income - net(5)						1,141								601
Income (loss) before income taxes					$	3,261							$	(4,178	)

(1)The significant expense categories and amounts align with the segment-level information regularly provided to the CODM.

(2)Cost of products sold (excluding depreciation and amortization) for the three and six months ended June 30, 2025 includes employee-retention credits, which are refundable employer payroll taxes for certain eligible businesses affected by the COVID-19 pandemic received from the Internal Revenue Service (the “Employee-Retention Credits”) of $735 for the FCEP ($456) and ALP ($279) segments.

(3)Deconsolidation Charge represents the write-down of the Estimated Recovery associated with the UES-UK insolvency.

(4)Corporate costs represent the operating expenses of the corporate office and other costs not allocated to the segments.

(5)Other income (expense) - net includes losses on foreign exchange transactions, net pension and other postretirement income, investment income, and unrealized gains on Rabbi trust investments.

(6)FCEP segment loss from operations for the three and six months ended June 30, 2025 includes charges for severance, accelerated depreciation and other exit costs of $6,750 associated with exiting the U.K. operations.

	Capital Expenditures				Depreciation and Amortization Expense								Identifiable Assets(2)
	Six Months Ended June 30,				Three Months Ended June 30,				Six Months Ended June 30,				June 30,		December 31,
	2026		2025		2026		2025		2026		2025		2026		2025
FCEP(1)	$	4,254	$	2,646	$	3,863	$	5,084	$	7,787	$	9,452	$	267,934	$	272,303
ALP		4,880		1,015		350		284		677		552		216,392		215,833
Corporate		—		—		13		—		20		—		6,536		7,219
Consolidated total	$	9,134	$	3,661	$	4,226	$	5,368	$	8,484	$	10,004	$	490,862	$	495,355

	Long-lived Assets(3)				Net Sales by Geographic Area(4)								Income (Loss) Before Income Taxes
	June 30,		December 31,		Three Months Ended June 30,				Six Months Ended June 30,				Three Months Ended June 30,						Six Months Ended June 30,
Geographic Areas:	2026		2025		2026		2025		2026		2025		2026			2025			2026			2025
United States(5)	$	199,884	$	211,461	$	65,868	$	61,727	$	136,297	$	121,623	$	(663	)	$	(48	)	$	(2,686	)	$	349
Foreign(6)		39,167		40,376		37,050		51,377		74,948		95,746		3,489			(6,080	)		5,947			(4,527	)
Consolidated total	$	239,051	$	251,837	$	102,918	$	113,104	$	211,245	$	217,369	$	2,826		$	(6,128	)	$	3,261		$	(4,178	)

(1)Depreciation and amortization expense for the three and six months ended June 30, 2025 includes accelerated depreciation of $654 associated with exiting the U.K. operations.

(2)Identifiable assets for the FCEP segment include (i) the Estimated Recovery of $5,370 at June 30, 2026 and $7,500 at December 31, 2025 and (ii) investments in joint ventures of $835 at each of June 30, 2026 and December 31, 2025. Identifiable assets for the ALP segment include asbestos-related insurance receivables of $116,965 and $126,838 at June 30, 2026 and December 31, 2025, respectively. Identifiable assets for Corporate represent cash and cash equivalents and other items not allocated to reportable segments.

(3)Long-lived assets exclude deferred income tax assets. Long-lived assets in the U.S. include noncurrent asbestos-related insurance receivables of $97,965 and $107,838 at June 30, 2026 and December 31, 2025, respectively. Foreign long-lived assets primarily represent assets of the foreign operations.

(4)Net sales are attributed to the geographic areas based on the location of the customer. Sales to individual foreign countries were less than 10% of condensed consolidated net sales for each of the periods. The majority of foreign net sales for each of the periods is attributable to the FCEP segment.

(5)Income before income taxes for the United States for the six months ended June 30, 2026 includes the Deconsolidation Charge of $875. Loss before income taxes for the United States for the three and six months ended June 30, 2025 includes the Employee-Retention Credits of $735.

(6)Loss before income taxes for foreign for the three and six months ended June 30, 2025 includes charges for severance, accelerated depreciation and other exit costs of $6,750 associated with exiting the U.K. operations.