v3.25.2
Financial Information by Segment
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Financial Information by Segment Financial Information by Segment
Segment information
We disclose the results of each of our operating segments in accordance with ASC 280, Segment Reporting. We manage our business in two operating segments as follows:
•Rubber Carbon Black—Used in the reinforcement of rubber in tires and mechanical rubber goods, and
•Specialty Carbon Black—Used for protection, colorization and conductivity in coatings, polymers, batteries, printing and other special applications.
Corporate includes income and expenses that cannot be directly allocated to the business segments or that are managed at the corporate level. This includes finance income and expenses, taxes and items with less bearing on the underlying core business.
Our operations are managed by senior executives who report to our Chief Executive Officer (“CEO”), the chief operating decision maker (“CODM”). Discrete financial information is available for each of the segments, and the CODM uses operating results of each operating segment for performance evaluation and resource allocation.
Our CODM uses Adjusted EBITDA as the primary measure for reviewing our segment profitability. We define Adjusted EBITDA as Income from operations before depreciation and amortization, share-based compensation, and non-recurring items (such as restructuring expenses, legal settlements gains, etc.) plus Earnings in affiliated companies, net of tax.
The CODM does not review reportable segment asset or liability information for purposes of assessing performance or allocating resources.
Segment operating results for the three months ended June 30, 2025 and 2024 are as follows:
RubberSpecialtyCorporateTotal
(In millions)
2025
Net sales from external customers$308.3 $158.1 $— $466.4 
Less:
Cost of Sales242.5 125.5 — 368.0 
Selling, general and administrative expenses34.2 23.2 0.3 57.7 
Other segment items3.3 4.8 0.5 8.6 
Add:
Equity in earnings of affiliated companies, net of tax0.6 — — 0.6 
LTIP and other non-operating charges1.0 2.3 0.8 4.1 
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment19.0 13.0 — 32.0 
Adjusted EBITDA$48.9 $19.9 $— $68.8 
Capital expenditures16.8 25.4 — 42.2 
2024
Net sales from external customers$311.5 $165.5 $— $477.0 
Less:
Cost of Sales241.2 126.0 — 367.2 
Selling, general and administrative expenses39.2 20.9 0.2 60.3 
Other segment items3.8 4.1 — 7.9 
Add:
Equity in earnings of affiliated companies, net of tax0.2 — — 0.2 
LTIP and other non-operating charges1.5 1.3 0.2 3.0 
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment18.1 12.2 — 30.3 
Adjusted EBITDA$47.1 $28.0 $— $75.1 
Capital expenditures26.1 28.6 — 54.7 
Segment operating results for the six months ended June 30, 2025 and 2024 are as follows:
RubberSpecialtyCorporateTotal
(In millions)
2025
Net sales from external customers$625.3 $318.8 $— $944.1 
Less:
Cost of Sales501.4 246.2 — 747.6 
Selling, general and administrative expenses70.3 45.2 0.6 116.1 
Other segment items7.9 8.4 0.8 17.1 
Add:
Equity in earnings of affiliated companies, net of tax1.1 — — 1.1 
LTIP and other non-operating charges2.8 2.9 1.4 7.1 
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment40.1 23.4 — 63.5 
Adjusted EBITDA$89.7 $45.3 $— $135.0 
Assets$1,130.3 $765.5 $129.1 $2,024.9 
Capital expenditures30.9 40.5 — 71.4 
2024
Net sales from external customers$643.5 $336.4 $— $979.9 
Less:
Cost of Sales492.7 255.2 — 747.9 
Selling, general and administrative expenses77.6 43.8 0.4 121.8 
Other segment items7.5 8.3 — 15.8 
Add:
Equity in earnings of affiliated companies, net of tax0.3 — — 0.3 
LTIP and other non-operating charges3.7 2.4 0.4 6.5 
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment34.8 24.4 — 59.2 
Adjusted EBITDA$104.5 $55.9 $— $160.4 
Assets$1,064.9 $716.0 $127.9 $1,908.8 
Capital expenditures44.5 43.3 — 87.8 
Other segment items—Other segment items for each reportable segment includes Research and Development costs and Other expense (income), net.
A reconciliation of Income before earnings in affiliated companies and income taxes to Adjusted EBITDA for each of the periods presented is as follows:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In millions)
Income before earnings in affiliated companies and income taxes$13.0 $29.4 $30.5 $69.5 
LTIP and other non-operating charges4.1 3.0 7.1 6.5 
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment32.0 30.3 63.5 59.2 
Equity in earnings of affiliated companies, net of tax0.6 0.2 1.1 0.3 
Interest and other financial expense, net19.1 12.2 32.8 24.9 
Adjusted EBITDA$68.8 $75.1 $135.0 $160.4 
LTIP and other non-operating charges include the following:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In millions)
Long term incentive plan$3.6 $3.0 $6.3 $6.5 
Other non-operating0.5 — 0.8 — 
LTIP and other non-operating charges$4.1 $3.0 $7.1 $6.5