Restructuring Expenses

3 Months Ended

Mar. 31, 2026

Restructuring and Related Activities [Abstract]

Restructuring Expenses

Restructuring Expenses

Cost Reduction Initiative

During the fourth quarter of 2022, to further our ongoing efforts to improve operating efficiencies and reduce costs, we announced plans for a reduction in our sales force, and initiated plans to relocate certain product lines from our Independence, Kansas manufacturing facility and from our St. Thomas, Canada manufacturing facility to our manufacturing facilities in Reynosa, Mexico. In 2025, we extended the program for plans to relocate additional product lines from certain plants in the United States and Canada to our existing manufacturing facilities in Mexico. We anticipate that the Cost Reduction Initiative will be substantially complete by the end of 2026. Additional restructuring costs related to the initiative are expected to be immaterial. The total restructuring expenses recorded to date are $6.9 million.

Activity for the three months ended March 31, 2026 related to the Cost Reduction Initiative consisted of the following (in thousands):

		Workforce Reduction		Other Exit Costs	Total
Exit activity liability at December 31, 2025		$	206	—	$	206
Restructuring costs provided for during 2026	(a)	83		251	334
Cash payments		(102)		(251)	(353)
Exit activity liability at March 31, 2026		$	187	—	$	187

(a)Consists of $0.2 million and $0.1 million in our Vehicle Control operating segment and Temperature Control operating segment, respectively.

Restructuring activities are included within “sundry payables and accrued expenses” and “other accrued liabilities” in the consolidated balance sheet. We regularly evaluate productivity initiatives and may either extend existing restructuring programs or initiate new restructuring programs in the future.

Separation Program

In 2024, we offered a voluntary retirement incentive package of severance and other benefit enhancements to eligible employees in the United States and Canada, and later expanded the program to include involuntary separations. This program is substantially complete with total restructuring expenses recorded to date of $7.7 million and additional restructuring costs are expected to be immaterial. During the three months ended March 31, 2026 cash payments were $0.2 million and the exit activity liability at March 31, 2026 is $0.4 million.