On March 6, 2025, the Company announced the launch of a 'Focused Transformation' initiative with a target to implement $20 million of annualized cost savings, primarily in SG&A, by year-end 2025. In conjunction with the program the Company incurred $3.3 million of restructuring charges during the year ended December 31, 2025. Accrued and unpaid restructuring expenses were $0.6 million at December 31, 2025.

On July 31, 2025, the Company announced as part of its Focused Transformation initiatives, a plan to idle two of its rotational molding production facilities and to consolidate that production into other facilities. In conjunction with this initiative the Company incurred $2.6 million of restructuring charges during the year ended December 31, 2025. Accrued and unpaid restructuring expenses were not significant at December 31, 2025 and the Company expects to incur up to $11 million in restructuring costs to complete the initiative, including costs related to machine moves, asset impairments and costs related to the long-term facility leases.

In conjunction with the Company's previously announced restructuring plan to improve the Company’s organizational structure and operational efficiency within the Distribution Segment, the Company incurred $2.5 million and $1.4 million of restructuring charges during the years ended December 31, 2025 and 2024, respectively. The Company also entered into termination agreements to exit two of its idled lease facilities, in conjunction with the restructuring plan, for which the original leases extended through 2028, and total termination charges of $1.6 million, included in the totals above, for the year ended December 31, 2025, were recorded to satisfy all remaining obligations under the original lease agreements. Accrued and unpaid restructuring expenses totaled $0.3 million at December 31, 2025 and the Company does not expect to incur any further costs related to this initiative which is now complete.

On July 23, 2025, the Company's Board of Directors approved launching a strategic review of Myers Tire Supply, which is included in the Distribution segment. As a result of the strategic review announced in the second quarter of this year, the company has now initiated a sale process to divest the business, however there can be no assurance that a sale will be completed on terms acceptable to the Company, or at all. Revenue from this business was $187 million for the year ended December 31, 2025, which represents approximately 92% of total revenue from the Distribution segment.

In August 2024, the Company announced the consolidation of its Atlantic, Iowa rotational molding facility into other rotational molding facilities to reduce the cost structure within the Material Handling segment. In December 2024, the Company reduced the scope of the consolidation to keep open its Atlantic, Iowa rotational molding facility as a result of increased demand for certain products produced in that facility. Total restructuring costs for these actions incurred were approximately $0.9 million during the year ended December 31, 2024. Accrued and unpaid restructuring expenses were not significant at December 31, 2024.

In conjunction with the Company's previously announced Ameri-Kart plan, the Company incurred $2.3 million and $1.0 million of restructuring charges during the years ended December 31, 2024 and 2023. On May 7, 2024, the Company entered into a termination agreement to exit the idled lease facility, in conjunction with the Ameri-Kart plan, for which the original lease extended through 2026 and a termination payment of $1.8 million was recorded to satisfy all remaining obligations under the original lease. The Ameri-Kart plan is now complete and there were no remaining accrued and unpaid restructuring expenses at December 31, 2024.

Charges from other restructuring initiatives to reduce and streamline overhead costs during the years ended December 31, 2025, 2024 and 2023 totaled $2.8 million, $2.9 million and $1.5 million, respectively. Accrued and unpaid restructuring expenses were $0.2 million and $0.9 million at December 31, 2025 and December 31, 2024, respectively.

The restructuring charges noted above for the years ended December 31, 2025, 2024 and 2023 are presented in the Consolidated Statements of Operations as follows:


	For the Year Ended December 31,
	2025						2024						2023
Segment	Cost of Sales		SG&A and Other (1)		Total		Cost of Sales		SG&A		Total		Cost of Sales		SG&A		Total
Material Handling	$	2,347	$	1,555	$	3,902	$	3,492	$	375	$	3,867	$	829	$	627	$	1,456
Distribution		—		3,051		3,051		514		888		1,402		—		914		914
Corporate		—		4,209		4,209		—		2,271		2,271		—		166		166
Total	$	2,347	$	8,815	$	11,162	$	4,006	$	3,534	$	7,540	$	829	$	1,707	$	2,536

(1) Amounts included in SG&A and Other, for the year ended December 31, 2025 include a $1.0 million charge related to the facility consolidations, discussed above, that is classified within (Gain) loss on disposal of fixed assets on the Consolidated Statements of Operations.

Restructuring liabilities are included in other current liabilities on the Consolidated Balance Sheets. The change in other current liabilities for the year ended December 31, 2025 was as follows:


	Employee Reduction			Facility Consolidations			Other Exit Costs (1)			Total
Balance at December 31, 2024	$	—		$	—		$	962		$	962
Charges to expense		1,794			4,685			4,683			11,162
Cash payments		(1,928	)		(3,348	)		(4,880	)		(10,156	)
Non-cash activity		171			(1,004	)		—			(833	)
Balance at December 31, 2025	$	37		$	333		$	765		$	1,135

(1) Other exit costs consist primarily of executive transition and other related costs.