v3.25.1
Segment information (Tables)
 3 Months Ended
Mar. 29, 2025
Segment Reporting [Abstract]  
Schedule of Net Sales by Operating Segment
Sales between reportable segments and the impact of such sales on Adjusted EBITDA for each segment are not included in internal reports presented to the CEO and have therefore not been included below.
Three months ended
(dollars in millions)
March 29, 2025March 30, 2024
Power Transmission$527.2 $532.8 
Fluid Power320.4 329.8 
Net sales
$847.6 $862.6 
Adjusted EBITDA by segment was as follows:
Three months ended
(dollars in millions)
March 29, 2025March 30, 2024
Power Transmission$116.7 $119.0 
Fluid Power 70.6 76.6 
Adjusted EBITDA
$187.3 $195.6 
The table below represents the segment profit or loss provided to the CEO on a quarterly basis:
Three months ended
March 29, 2025March 30, 2024
Power TransmissionFluid PowerTotalPower TransmissionFluid PowerTotal
Net sales$527.2 $320.4 $847.6 $532.8 $329.8 $862.6 
Adjusted cost of sales (1)
(308.8)(194.0)(502.8)(318.5)(200.3)(518.8)
Adjusted selling, general and administrative expenses (2)
(114.4)(66.6)(181.0)(108.3)(64.9)(173.2)
Depreciation and software amortization12.7 10.8 23.5 12.9 12.0 24.9 
Credit gain related to customer bankruptcy (included in SG&A) (3)
— — — 0.1 — 0.1 
Adjusted EBITDA$116.7 $70.6 $187.3 $119.0 $76.6 $195.6 
(1)    Adjusted cost of sales excluded inventory impairments and adjustments primarily related to the reversal of the adjustment to remeasure certain inventories on a LIFO basis, and restructuring-related expenses (included in cost of sales).
(2)    Adjusted selling, general and administrative expenses excluded acquired intangible assets amortization, share-based compensation expense, and restructuring-related expenses (included in SG&A).
(3)    On January 31, 2023, one of our customers filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. In connection with the bankruptcy proceedings, we preliminarily evaluated our potential risk and exposure relating to our outstanding pre-petition accounts receivable balance from the customer and recorded an initial pre-tax charge to reflect our estimated recovery. We continue to monitor the circumstances surrounding the bankruptcy and adjust our estimate as necessary.
Schedule of Net sales by Key Geographic Regions and Markets
The following table summarizes our net sales by key geographic region:
Three months ended March 29, 2025Three months ended March 30, 2024
(dollars in millions)
Power Transmission
Fluid Power
Power Transmission
Fluid Power
U.S.$154.3 $168.0 $141.0 $172.0 
North America, excluding the U.S.
54.5 44.3 63.1 50.5 
South America21.8 10.0 27.8 9.2 
United Kingdom (“U.K.”)10.3 15.4 10.6 15.8 
Luxembourg62.8 22.8 61.7 22.9 
EMEA(1), excluding the U.K. and Luxembourg
85.2 27.7 91.3 29.1 
East Asia & India69.2 20.4 68.6 19.9 
Greater China69.1 11.8 68.7 10.4 
Net sales$527.2 $320.4 $532.8 $329.8 
(1)    Europe, Middle East and Africa (“EMEA”).
The following table summarizes our segment net sales into OEM and Replacement channels:
For the three months ended
March 29, 2025March 30, 2024
(dollars in millions)Power TransmissionFluid PowerPower TransmissionFluid Power
Replacement$349.9 $226.1 $348.6 $221.9 
OEM177.3 94.3 184.2 107.9 
Net sales$527.2 $320.4 $532.8 $329.8 
Schedule of Reconciliation of Adjusted EBITDA to Net Income from Continuing Operations
Reconciliation of net income from continuing operations before taxes to Adjusted EBITDA:
Three months ended
(dollars in millions)
March 29, 2025March 30, 2024
Income from continuing operations before taxes$93.8 $80.7 
Interest expense29.6 37.5 
Other expenses (income)1.3 (1.5)
Operating income from continuing operations124.7 116.7 
Depreciation and amortization52.2 54.6 
Transaction-related expenses (1)
0.4 0.4 
Asset impairments0.6 — 
Restructuring expenses1.6 1.2 
Share-based compensation expense6.1 8.6 
Inventory write-offs and adjustments (included in cost of sales) (2)
(1.0)13.9 
Restructuring-related expenses (included in cost of sales)1.2 — 
Restructuring-related expenses (included in SG&A)1.5 0.1 
Credit loss related to customer bankruptcy (included in SG&A) (3)
— 0.1 
Adjusted EBITDA$187.3 $195.6 
(1)    Transaction-related expenses relate primarily to advisory fees and other costs recognized in respect of major corporate transactions, including the acquisition of businesses, and equity and debt transactions.
(2)    Inventory write-offs and adjustments include the reversal of the adjustment to remeasure certain inventories on a LIFO basis. During the three months ended March 29, 2025, the Company experienced a decrease in inventory values, that resulted in the liquidation of a LIFO inventory layer. This LIFO liquidation did not have a significant effect on net income.
(3)    On January 31, 2023, one of our customers filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. In connection with the bankruptcy proceedings, we preliminarily evaluated our potential risk and exposure relating to our outstanding pre-petition accounts receivable balance from the customer and recorded an initial pre-tax charge to reflect our estimated recovery. We continue to monitor the circumstances surrounding the bankruptcy and adjust our estimate as necessary.