At a meeting of the Board of Directors on October 26, 2021, the Company's Board of Directors approved the authorization to purchase up to $500.0 million of shares under the Company's share repurchase program. The authorization has no expiration date. In 2024, the Company acquired and retired 332,439 shares of its common stock at an average cost of $150.42 per share for a total cost of $50.0 million. The Company did not acquire any shares of its common stock in 2025 or 2023.

Based on share repurchase activity since the most recent authorization, as of December 31, 2025, the maximum value of shares of the Company’s common stock available to be purchased under the Company's share repurchase program was approximately $145.0 million.

The Company recognized approximately $37.3 million, $34.8 million and $58.2 million in share-based compensation expense in 2025, 2024 and 2023, respectively. In connection with the Altra Transaction, the Company incurred $15.7 million of share-based compensation expense during the first quarter of 2023 related to the accelerated vesting of awards for certain former Altra employees. The total income tax benefit recognized in the Consolidated Statements of Income (Loss) for share-based compensation expense was $4.2 million, $4.8 million and $10.5 million in 2025, 2024 and 2023, respectively. The Company recognizes compensation expense on grants of share-based compensation awards on a straight-line basis over the vesting period of each award. The total fair value of shares and options vested was $37.5 million, $46.2 million and $35.4 million in 2025, 2024 and 2023, respectively.

Total unrecognized compensation cost related to share-based compensation awards was approximately $37.5 million, which the Company expects to recognize over a weighted average period of approximately 1.5 years as of December 31, 2025.

During 2023, the Company's shareholders approved the 2023 Equity Incentive Plan ("2023 Plan"). The 2023 Plan authorized the issuance of 5.6 million shares of common stock for equity-based awards and terminated any further grants under prior equity plans. Approximately 4.5 million shares were available for future grant or payment under the 2023 Plan as of December 31, 2025.

The Company uses several forms of share-based incentive awards including non-qualified stock options and stock settled stock appreciation rights (“SARs”). SARs are the right to receive stock in an amount equal to the appreciation in value of a share of stock over the base price per share. Shares granted generally vest over three years on the anniversary date of the grant date. Generally all grants expire 10 years from the grant date. All grants are made at prices equal to the fair market value of the stock on the grant date. For the years ended December 31, 2025, December 31, 2024 and December 31, 2023, expired and canceled shares were immaterial.


	2025		2024		2023
Total Intrinsic Value of Share-Based Incentive Awards Exercised	$	7.2	$	22.0	$	6.2
Cash Received from Stock Option Exercises	2.0		4.9		2.5
Income Tax Benefit from the Exercise of Stock Options	5.8		21.2		5.3
Total Fair Value of Share-Based Incentive Awards Vested	8.3		13.4		10.9


	2024	2023
Per Share Weighted Average Fair Value of Grants	$62.85	$54.20
Risk-Free Interest Rate	4.3%	4.1%
Expected Life (Years)	5.0	5.0
Expected Volatility	38.0%	35.8%
Expected Dividend Yield	0.8%	0.9%

The average risk-free interest rate is based on US Treasury security rates in effect as of the grant date. The expected dividend yield is based on the projected annual dividend as a percentage of the estimated market value of the Company's common stock as of the grant date. The Company estimated the expected volatility using a weighted average of daily historical volatility of the Company's stock price over the expected term of the award. The Company estimated the expected term using historical data.


Number of Shares Under Options and SARs	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in millions)
Outstanding as of December 31, 2024	628,494	$	116.90

Exercised	(110,758)	77.15
Forfeited	(12,288)	162.14

Outstanding as of December 31, 2025	505,448	$	124.58	5.1	$	12.4
Exercisable as of December 31, 2025	418,480	$	116.77	4.8	$	12.3

As of December 31, 2025, there was $2.0 million of unrecognized compensation cost related to non-vested options and SARs that is expected to be recognized as a charge to earnings over a weighted average period of 0.7 years.

Restricted stock awards ("RSAs") and restricted stock units ("RSUs") consist of shares or the rights to shares of the Company's stock. The awards are restricted such that they are subject to substantial risk of forfeiture and to restrictions on their sale or other transfer. As defined in the individual grant agreements, acceleration of vesting may occur under a change in control, or death, disability or normal retirement of the grantee.


	Shares	Weighted Average Fair Value at Grant Date		Weighted Average Remaining Contractual Term (years)
Unvested RSAs as of December 31, 2024	1,991	$	136.77	1.9

Vested	(934)	136.77

Unvested RSAs as of December 31, 2025	1,057	$	136.77	1.4

Other than RSAs that were issued to replace equity awards held by employees of Altra at the time of the Altra acquisition in the prior year, RSAs vest on the one year anniversary of the grant date, provided the holder of the shares is continuously employed by or in the service of the Company until the vesting date. Compensation expense recognized related to the RSAs was $0.1 million, $0.9 million and $2.3 million for 2025, 2024 and 2023, respectively.

As of December 31, 2025, there was $0.1 million of unrecognized compensation cost related to non-vested RSAs that is expected to be recognized as a charge to earnings over a weighted average period of 1.4 years.


	Shares	Weighted Average Fair Value at Grant Date		Weighted Average Remaining Contractual Term (years)
Unvested RSUs as of December 31, 2024	242,173	$	154.79	1.8
Granted	216,773	133.95
Vested	(108,542)	153.18
Forfeited	(44,253)	143.54
Unvested RSUs as of December 31, 2025	306,151	$	142.41	1.7

Other than RSUs that were issued to replace equity awards held by employees of Altra at the time of the Altra acquisition in the prior year, RSUs vest one third each year on the anniversary of the grant date, provided the holder of the shares is continuously employed by the Company until the vesting date. Compensation expense recognized related to the RSUs was $19.8 million, $17.3 million and $24.7 million for 2025, 2024 and 2023, respectively.

As of December 31, 2025, there was $20.9 million of unrecognized compensation cost related to non-vested RSUs that is expected to be recognized as a charge to earnings over a weighted average period of 1.7 years.

Performance share unit awards ("PSUs") consist of the right to shares of the Company's stock awarded to associates of the Company. PSUs vest upon the approval of metric achievement in the first quarter after the conclusion of the three year overall performance period. PSUs are granted at a performance target of 100%. The 2025 PSUs include three performance metrics that are equally weighted: relative Total Shareholder Return (“rTSR”) as compared to the S&P 900 Industrials index, Return on Invested Capital, and Synergy Achievement. The payout for each performance metric ranges from 0% to 200%. The 2025 PSUs also include a revenue multiplier based on the Company's revenue growth over a three-year period from 2025 through 2027, which allows for up to a maximum 300% total payout. PSUs issued in 2024 had a performance metric based on rTSR, as compared to the S&P 900 Industrials index. PSUs issued in 2023 had a performance metric based on rTSR, as compared to a designated peer group.

The portion of PSUs with a performance metric using rTSR are valued using a Monte Carlo simulation method as of the grant date because it contains a market condition. The portion of PSUs with performance metrics based on Return on Invested Capital and Synergy Achievement are valued using the closing market price of the Company's stock as of the grant date. As set forth in the individual grant agreements, acceleration of prorated vesting may occur under a change of control, approved retirement, death or disability. There are no voting rights with these instruments until vesting occurs and a share of stock is issued.


	December 31, 2025	December 31, 2024	December 31, 2023
Risk-free interest rate	4.2%	4.5%	4.4%
Expected life (years)	3.0	3.0	3.0
Expected volatility	38.0%	36.0%	41.0%
Expected dividend yield	—%	—%	—%


	Shares	Weighted Average Fair Value at Grant Date		Weighted Average Remaining Contractual Term (years)
Unvested PSUs as of December 31, 2024	142,086	$	229.60	1.8
Granted	108,770	139.54
Vested	(33,691)	150.85
Forfeited	(18,434)	182.24
Unvested PSUs as of December 31, 2025	198,731	$	194.65	1.3