Income Taxes

9 Months Ended

Sep. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 12 - INCOME TAXES

For interim periods, we generally utilize the estimated annual effective tax rate method under which the estimated annual effective tax rate is forecasted quarterly using actual historical information and forward-looking estimates and applied to year-to-date ordinary income. The tax effects of unusual or infrequently occurring items, including changes in judgment about valuation allowances, settlements with taxing authorities and effects of changes in tax laws or rates, and changes due to tax restructuring are reported in the interim period in which they occur.

Income taxes for the three and nine months ended September 30, 2025 were a $4.9 million and $44.9 million tax provision on pre-tax losses of $80.1 million and $234.1 million, resulting in an effective income tax rate of (6.1) percent and (19.2) percent. The effective income tax rate for the three months ended September 30, 2025 differs from the statutory rate primarily due to valuation allowances, the effect of Pillar Two, and the mix of earnings among tax jurisdictions. The effective income tax rate for the nine months ended September 30, 2025 differs from the statutory rate primarily due to valuation allowances, the reversal of an uncertain tax position, the effect of Pillar Two, and the mix of earnings among tax jurisdictions.

The income tax provision for the three and nine months ended September 30, 2024 was $0.9 million and $23.9 million on pre-tax losses of $23.9 million and $44.7 million, resulting in an effective income tax rate of (3.7)% and (53.6)%. The effective income tax rate for the three months ended September 30, 2024 differs from the statutory rate primarily due to valuation allowances and the mix of earnings among tax jurisdictions. The effective income tax rate for the nine months ended September 30, 2024 differs from the statutory rate primarily due to valuation allowances, the reversal of an uncertain tax position, the mix of earnings among tax jurisdictions, and a deferred tax charge related to a tax restructuring of $17.8 million.

The Company continuously evaluates the realizability of its net deferred tax assets. As of September 30, 2025, substantially all U.S., Mexico, Poland, and its German deferred tax assets, net of deferred tax liabilities, were subject to valuation allowances.

The Organization for Economic Co-operation and Development issued Pillar Two model rules introducing a new global minimum tax of 15.0% effective January 1, 2024. While the United States has not yet adopted the Pillar Two rules, various other governments around the world have enacted part of the legislation. As currently designed, Pillar Two ultimately applies to the Company’s worldwide operations. The Company has included the effect of Pillar Two in the condensed consolidated financial statements and continues to assess U.S. and global legislative action related to Pillar Two for potential effect changes of the current assessment. On July 4, 2025, Public Law 119-21, the “Act” (otherwise known as the “One Big Beautiful Bill Act”) was signed into law. The Act

includes the extension and modification of certain key provisions of the U.S. Tax Cuts and Jobs Act of 2017 (TCJA) and other provisions. The Company is analyzing the provisions within the Act. However, it does not expect a material effect on our consolidated financial statements.