| Reconciliation of Segment Reporting to Consolidated |
| | | | | | | | | | | | | | | | | | | | | | | | Engineered | | Latex | | Polymer | | Americas | | Total | | Corporate | | | | Three Months Ended (1) | | Materials | | Binders | | Solutions | | Styrenics | | Segments | | Unallocated | | Total | June 30, 2025 | | | | | | | | | | | | | | | | | | | | | | Net sales | | $ | 293.2 | | $ | 204.2 | | $ | 286.9 | | $ | — | | $ | 784.3 | | $ | — | | $ | 784.3 | Cost of sales | | | (274.1) | | | (188.9) | | | (284.7) | | | — | | | (747.7) | | | — | | | (747.7) | Selling, general and administrative expenses | | | (19.6) | | | (8.8) | | | (17.4) | | | — | | | (45.8) | | | (32.3) | | | (78.1) | Equity in earnings of unconsolidated affiliate | | | — | | | — | | | — | | | 8.2 | | | 8.2 | | | — | | | 8.2 | Other income and (expense) | | | 0.1 | | | (0.4) | | | (0.4) | | | — | | | (0.7) | | | 0.5 | | | (0.2) | Other segment items(3) | | | 0.5 | | | — | | | 10.6 | | | — | | | 11.1 | | | 4.2 | | | 15.3 | Depreciation and amortization expenses(4) | | | 31.0 | | | 10.7 | | | 10.2 | | | — | | | 51.9 | | | 7.9 | | | 59.8 | Adjusted EBITDA(1) | | $ | 31.1 | | $ | 16.8 | | $ | 5.2 | | $ | 8.2 | | $ | 61.3 | | | | | | | Investments in unconsolidated affiliate | | | — | | | — | | | — | | | 224.0 | | | 224.0 | | | — | | | 224.0 | Capital expenditures | | | 3.7 | | | 4.0 | | | 1.6 | | | — | | | 9.3 | | | 0.5 | | | 9.8 | June 30, 2024 | | | | | | | | | | | | | | | | | | | | | | Net sales | | $ | 323.8 | | $ | 252.4 | | $ | 343.8 | | $ | — | | $ | 920.0 | | $ | — | | $ | 920.0 | Cost of sales | | | (301.4) | | | (224.5) | | | (325.7) | | | — | | | (851.6) | | | — | | | (851.6) | Selling, general and administrative expenses | | | (18.1) | | | (9.3) | | | (12.3) | | | — | | | (39.7) | | | (30.4) | | | (70.1) | Equity in earnings of unconsolidated affiliate | | | — | | | — | | | — | | | 15.6 | | | 15.6 | | | — | | | 15.6 | Other income and (expense) | | | 0.8 | | | (0.4) | | | 2.2 | | | — | | | 2.6 | | | 0.7 | | | 3.3 | Other segment items(3) | | | (0.2) | | | 0.1 | | | 0.4 | | | 0.1 | | | 0.4 | | | 2.6 | | | 3.0 | Depreciation and amortization expenses(4) | | | 27.1 | | | 7.3 | | | 7.6 | | | — | | | 42.0 | | | 4.6 | | | 46.6 | Adjusted EBITDA(1) | | $ | 32.0 | | $ | 25.6 | | $ | 16.0 | | $ | 15.7 | | $ | 89.3 | | | | | | | Investments in unconsolidated affiliate | | | — | | | — | | | — | | | 269.0 | | | 269.0 | | | — | | | 269.0 | Capital expenditures | | | 7.2 | | | 4.7 | | | 1.8 | | | — | | | 13.7 | | | 0.5 | | | 14.2 |
| | | | | | | | | | | | | | | | | | | | | | | | Engineered | | Latex | | Polymer | | Americas | | Total | | Corporate | | | | Six Months Ended (1) | | Materials | | Binders | | Solutions | | Styrenics | | Segments | | Unallocated | | Total | June 30, 2025 | | | | | | | | | | | | | | | | | | | | | | Net sales | | $ | 570.5 | | $ | 413.5 | | $ | 585.1 | | $ | — | | $ | 1,569.1 | | $ | — | | $ | 1,569.1 | Cost of sales | | | (535.2) | | | (371.5) | | | (562.0) | | | — | | | (1,468.7) | | | — | | | (1,468.7) | Selling, general and administrative expenses | | | (36.1) | | | (17.6) | | | (25.3) | | | — | | | (79.0) | | | (90.1) | | | (169.1) | Equity in earnings of unconsolidated affiliate | | | — | | | — | | | — | | | 6.4 | | | 6.4 | | | — | | | 6.4 | Other income and (expense)(2) | | | 0.3 | | | (0.8) | | | 25.3 | | | — | | | 24.8 | | | (1.8) | | | 23.0 | Other segment items(3) | | | (0.1) | | | 0.1 | | | 18.3 | | | — | | | 18.3 | | | 31.6 | | | 49.9 | Depreciation and amortization expenses(4) | | | 57.4 | | | 17.6 | | | 8.3 | | | — | | | 83.3 | | | 12.5 | | | 95.8 | Adjusted EBITDA(1) | | $ | 56.8 | | $ | 41.3 | | $ | 49.7 | | $ | 6.4 | | $ | 154.2 | | | | | | | Investments in unconsolidated affiliate | | | — | | | — | | | — | | | 224.0 | | | 224.0 | | | — | | | 224.0 | Capital expenditures | | | 7.1 | | | 7.6 | | | 2.7 | | | — | | | 17.4 | | | 1.1 | | | 18.5 | June 30, 2024 | | | | | | | | | | | | | | | | | | | | | | Net sales | | $ | 606.3 | | $ | 493.9 | | $ | 723.8 | | $ | — | | $ | 1,824.0 | | $ | — | | $ | 1,824.0 | Cost of sales | | | (583.3) | | | (437.5) | | | (674.2) | | | — | | | (1,695.0) | | | — | | | (1,695.0) | Selling, general and administrative expenses | | | (31.6) | | | (18.9) | | | (28.2) | | | — | | | (78.7) | | | (61.5) | | | (140.2) | Equity in earnings of unconsolidated affiliate | | | — | | | — | | | — | | | 21.8 | | | 21.8 | | | — | | | 21.8 | Other income and (expense) | | | 0.9 | | | (1.0) | | | 1.8 | | | — | | | 1.7 | | | (2.2) | | | (0.5) | Other segment items(3) | | | (2.4) | | | 0.2 | | | 7.0 | | | — | | | 4.8 | | | 5.3 | | | 10.1 | Depreciation and amortization expenses(4) | | | 52.7 | | | 14.6 | | | 14.9 | | | — | | | 82.2 | | | 9.4 | | | 91.6 | Adjusted EBITDA(1) | | $ | 42.6 | | $ | 51.3 | | $ | 45.1 | | $ | 21.8 | | $ | 160.8 | | | | | | | Investments in unconsolidated affiliate | | | — | | | — | | | — | | | 269.0 | | | 269.0 | | | — | | | 269.0 | Capital expenditures | | | 15.6 | | | 9.6 | | | 4.0 | | | — | | | 29.2 | | | 0.7 | | | 29.9 |
| (1) | The Company’s measure of segment operating performance is Adjusted EBITDA, which is defined as income from continuing operations before interest expense, net; provision for income taxes; depreciation and amortization expense; loss on extinguishment of long-term debt and certain debt issuance costs; asset impairment charges; gains or losses on the dispositions of businesses and assets; restructuring charges; acquisition related costs and benefits, and other items. Segment Adjusted EBITDA is the key metric that is used by the chief operating decision maker to evaluate business performance in comparison to budgets, forecasts, and prior year financial results, providing a measure that the chief operating decision maker believes reflects core operating performance by removing the impact of transactions and events that would not be considered a part of core operations. |
| (2) | On November 13, 2024, the Company announced it entered into agreements to supply a polycarbonate technology license and proprietary polycarbonate production equipment in Stade, Germany to a wholly owned subsidiary of Deepak for use in India. During the first quarter of 2025, the Company completed its performance obligations on the delivery of the technology license and recognized $26.0 million in “Other Expense (Income), Net” within the Polymer Solutions segment. |
| (3) | Other segment items contain activity primarily defined as addbacks to arrive at Adjusted EBITDA included from the loss on extinguishment of long-term debt and certain debt issuance costs; asset impairment charges; gains or losses on the dispositions of businesses and assets; restructuring charges; acquisition related costs and benefits, and other items. |
| (4) | Segment depreciation and amortization expense is included as a component of cost of goods sold; and selling, general, and administrative expense in the amounts regularly provided to the chief operating decision maker and are therefore added back to arrive at Segment Adjusted EBITDA. |
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| Reconciliation of IBT to Adjusted EBITDA |
| | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2025 | | 2024 | | 2025 | | 2024 | Loss before income taxes | | $ | (103.0) | | $ | (47.5) | | $ | (175.4) | | $ | (117.6) | Interest expense, net | | | 69.5 | | | 64.7 | | | 136.1 | | | 127.7 | Depreciation and Amortization(5) | | | 59.8 | | | 46.6 | | | 95.8 | | | 91.6 | Corporate Unallocated(6) | | | 19.7 | | | 22.5 | | | 47.8 | | | 49.0 | Adjusted EBITDA Addbacks(7) | | | 15.3 | | | 3.0 | | | 49.9 | | | 10.1 | Segment Adjusted EBITDA | | $ | 61.3 | | $ | 89.3 | | $ | 154.2 | | $ | 160.8 |
(5) | During the three months ended June 30, 2025, the Company entered into an agreement to move our current enterprise resource planning (“ERP”) system to a cloud based system, triggering an acceleration of the amortization of the capitalized software assets totaling $13.8 million. During the six months ended June 30, 2025, an $8.1 million change in cost estimate related to the Boehlen, Germany Asset Retirement Obligation was recognized as the Company was able to realize efficiencies during decommissioning. |
(6) | Corporate unallocated includes corporate overhead costs and certain other income and expenses. |
(7) | Adjusted EBITDA addbacks for the three and six months ended June 30, 2025 and 2024 are as follows: |
| | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | 2025 | | 2024 | | 2025 | | 2024 | Loss on financing transactions (Note 10) | | $ | 1.6 | | $ | — | | $ | 26.5 | | $ | — | Net gain on disposition of businesses and assets | | | — | | | (3.5) | | | — | | | (7.1) | Restructuring and other charges (Note 4) | | | 10.8 | | | 4.0 | | | 18.2 | | | 13.4 | Other items (a) | | | 2.9 | | | 2.5 | | | 5.2 | | | 3.8 | Total Adjusted EBITDA Addbacks | | $ | 15.3 | | $ | 3.0 | | $ | 49.9 | | $ | 10.1 |
| (a) | Other items for the 2025 periods primarily relate to fees incurred in conjunction with the Company’s legal defense costs associated with Synthos litigation, described in Note 13. Other items for the 2024 periods primarily relate to fees incurred in conjunction with Synthos litigation, certain strategic initiatives, as well as costs related to our transition to a new enterprise resource planning system. |
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