Note 9 — Segment Information The financial results for our operating segments are prepared using a management approach, which is consistent with the basis and manner in which we internally segregate financial information for the purpose of assisting in making internal operating decisions. We evaluate the performance of our operating segments based on operating income, and generally account for intersegment sales based on arm’s length prices. Corporate and certain other expenses are not allocated to the operating segments, except to the extent that the expense can be directly attributable to the business segment. Financial information for our operating segments for the quarters and nine months ended September, 2025 and 2024 were as follows:
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(Unaudited) |
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Composite |
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Engineered |
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Corporate & |
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(In millions) |
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Materials |
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Products |
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Other (a) |
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Total |
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Quarter Ended September 30, 2025 |
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Net sales to external customers |
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$ |
363.2 |
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|
$ |
93.0 |
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|
$ |
— |
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$ |
456.2 |
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Intersegment sales |
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|
18.9 |
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1.4 |
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|
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(20.3 |
) |
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— |
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Total sales |
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$ |
382.1 |
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|
$ |
94.4 |
|
|
$ |
(20.3 |
) |
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$ |
456.2 |
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Cost of sales |
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|
300.1 |
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|
75.2 |
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(19.0 |
) |
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|
356.3 |
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Gross margin |
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|
81.9 |
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19.3 |
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(1.3 |
) |
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|
99.9 |
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Selling, general and administrative expenses |
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27.1 |
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3.8 |
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10.2 |
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41.1 |
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Research and technology expenses |
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12.1 |
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1.0 |
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|
0.9 |
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|
14.0 |
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Other operating expense |
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2.8 |
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|
1.0 |
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|
5.0 |
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|
|
8.8 |
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Operating income (loss) |
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|
39.9 |
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|
13.6 |
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|
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(17.5 |
) |
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|
36.0 |
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Depreciation and amortization |
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|
27.7 |
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|
3.2 |
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— |
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|
30.9 |
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Stock-based compensation |
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|
0.6 |
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|
0.2 |
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|
0.2 |
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|
1.0 |
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Accrual basis additions to capital expenditures |
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|
16.7 |
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|
1.4 |
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— |
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|
18.1 |
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Quarter Ended September 30, 2024 |
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Net sales to external customers |
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$ |
367.6 |
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$ |
88.9 |
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$ |
— |
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$ |
456.5 |
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Intersegment sales |
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22.6 |
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|
0.1 |
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(22.7 |
) |
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— |
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Total sales |
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$ |
390.2 |
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$ |
89.0 |
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$ |
(22.7 |
) |
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$ |
456.5 |
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Cost of sales |
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|
298.4 |
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|
72.2 |
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(20.6 |
) |
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|
350.0 |
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Gross margin |
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91.8 |
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|
16.8 |
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(2.1 |
) |
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|
106.5 |
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Selling, general and administrative expenses |
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|
23.8 |
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5.3 |
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|
10.7 |
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|
39.8 |
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Research and technology expenses |
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|
11.4 |
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|
1.3 |
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|
1.1 |
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|
13.8 |
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Other operating expense |
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|
0.2 |
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|
0.2 |
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— |
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|
0.4 |
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Operating income (loss) |
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|
56.3 |
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|
10.0 |
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(13.8 |
) |
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|
52.5 |
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Depreciation and amortization |
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|
27.3 |
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|
3.7 |
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— |
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|
31.0 |
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Stock-based compensation |
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|
0.8 |
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0.2 |
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1.9 |
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|
2.9 |
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Accrual basis additions to capital expenditures |
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|
16.0 |
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|
2.5 |
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— |
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|
18.5 |
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Nine Months Ended September 30, 2025 |
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Net sales to external customers |
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$ |
1,121.7 |
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$ |
280.9 |
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$ |
— |
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$ |
1,402.6 |
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Intersegment sales |
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|
58.4 |
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|
2.1 |
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(60.5 |
) |
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— |
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Total sales |
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$ |
1,180.1 |
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|
$ |
283.0 |
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$ |
(60.5 |
) |
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$ |
1,402.6 |
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Cost of sales |
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|
909.3 |
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|
236.6 |
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(57.1 |
) |
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|
1,088.8 |
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Gross margin |
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270.7 |
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46.5 |
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(3.4 |
) |
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|
313.8 |
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Selling, general and administrative expenses |
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|
78.9 |
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|
12.1 |
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|
36.4 |
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|
127.4 |
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Research and technology expenses |
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|
36.2 |
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|
3.1 |
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|
2.8 |
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|
42.1 |
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Other operating expense |
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|
2.8 |
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|
26.3 |
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|
5.0 |
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|
34.1 |
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Operating income (loss) |
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|
152.8 |
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|
5.1 |
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(47.7 |
) |
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|
110.2 |
|
Depreciation and amortization |
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|
81.8 |
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|
|
9.7 |
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— |
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|
91.5 |
|
Stock-based compensation |
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|
4.5 |
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|
1.2 |
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|
7.7 |
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|
13.4 |
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Accrual basis additions to capital expenditures |
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|
45.3 |
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|
4.6 |
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— |
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|
49.9 |
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Nine Months Ended September 30, 2024 |
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Net sales to external customers |
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$ |
1,155.7 |
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$ |
273.5 |
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$ |
— |
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$ |
1,429.2 |
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Intersegment sales |
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|
69.8 |
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|
1.0 |
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(70.8 |
) |
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— |
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Total sales |
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$ |
1,225.5 |
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$ |
274.5 |
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|
$ |
(70.8 |
) |
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$ |
1,429.2 |
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Cost of sales |
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|
921.2 |
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|
218.2 |
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(61.5 |
) |
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|
1,077.9 |
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Gross margin |
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|
304.3 |
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|
56.3 |
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|
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(9.3 |
) |
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|
351.3 |
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Selling, general and administrative expenses |
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|
72.4 |
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|
|
15.9 |
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|
40.4 |
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|
128.7 |
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Research and technology expenses |
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|
36.5 |
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3.7 |
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3.4 |
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|
43.6 |
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Other operating expense |
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|
1.0 |
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|
0.8 |
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— |
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|
1.8 |
|
Operating income (loss) |
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|
194.3 |
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|
35.9 |
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(53.0 |
) |
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|
177.2 |
|
Depreciation and amortization |
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|
81.8 |
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|
11.2 |
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— |
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|
93.0 |
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Stock-based compensation |
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|
5.0 |
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|
1.3 |
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|
13.0 |
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|
19.3 |
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Accrual basis additions to capital expenditures |
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|
51.3 |
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|
8.3 |
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— |
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|
59.6 |
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(a)We do not allocate corporate expenses to the operating segments.
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Goodwill and Intangible Assets |
|
Composite |
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Engineered |
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(In millions) |
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Materials |
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Products |
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Total |
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Balance at December 31, 2024 |
|
$ |
83.1 |
|
|
$ |
153.9 |
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|
$ |
237.0 |
|
Amortization expense |
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|
(0.4 |
) |
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|
(1.0 |
) |
|
|
(1.4 |
) |
Currency translation adjustments |
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|
7.6 |
|
|
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(2.0 |
) |
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|
5.6 |
|
Balance at September 30, 2025 |
|
$ |
90.3 |
|
|
$ |
150.9 |
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$ |
241.2 |
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At September 30, 2025, the balance of goodwill and intangible assets was $191.5 million and $49.7 million, respectively.
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|
Composite |
|
|
Engineered |
|
|
Corporate & |
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(In millions) |
|
Materials |
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Products |
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Other |
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Total |
|
Segment assets |
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|
September 30, 2025 |
|
$ |
2,318.6 |
|
|
$ |
588.4 |
|
|
$ |
(148.6 |
) |
|
$ |
2,758.4 |
|
December 31, 2024 |
|
|
2,147.6 |
|
|
|
541.4 |
|
|
|
36.6 |
|
|
|
2,725.6 |
|
|