| Segment Reporting |
Note 15 – Segment Reporting The Company is organized under two reportable segments: Automotive and Medical. The Automotive reporting segment is comprised of our global automotive businesses, including the design, development, manufacturing and sales of Automotive Climate and Comfort Solutions (including Climate Control Seats, Climate Control Interiors, Lumbar and Massage Comfort Solutions and Climate and Comfort Electronics), Valve Systems and other automotive products. The Medical reporting segment is comprised of our patient temperature management business in the medical industry. Patient temperature management includes temperature management systems across multiple product categories addressing the needs of hyper-hypothermia therapy in intensive care, normothermia in surgical procedures and additional warming/cooling therapies utilized in acute and chronic care departments and non-hospital facilities. The Corporate and other unallocated expenses category includes certain enterprise and governance activities resulting in unallocated corporate costs and other activity and net costs that the Company may choose not to allocate directly to its business segments. A measure of assets has not been disclosed for each segment as it is not regularly reviewed by our chief operating decision maker. The table below presents segment information about the reported product revenues, significant segment expenses, operating income (loss) and depreciation and amortization of the Company for the three and six months ended June 30, 2026 and 2025.
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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|
2026 |
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|
2025 |
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|
2026 |
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|
2025 |
|
Product Revenues |
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|
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|
|
|
|
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Automotive |
|
$ |
404,815 |
|
|
$ |
363,852 |
|
|
$ |
786,981 |
|
|
$ |
705,726 |
|
Medical |
|
|
11,351 |
|
|
|
11,238 |
|
|
|
22,891 |
|
|
|
23,218 |
|
Total |
|
|
416,166 |
|
|
|
375,090 |
|
|
|
809,872 |
|
|
|
728,944 |
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|
|
|
|
|
|
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Significant Segment Expenses and Operating Performance |
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Automotive |
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|
|
|
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Cost of sales |
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|
312,691 |
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|
|
278,424 |
|
|
|
603,071 |
|
|
|
538,651 |
|
Net research and development expenses |
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|
19,838 |
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|
17,818 |
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|
40,719 |
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|
37,202 |
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Selling, general and administrative expenses |
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|
19,443 |
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|
16,814 |
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|
|
36,994 |
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|
32,533 |
|
Restructuring expenses, net |
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|
5,651 |
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|
|
1,924 |
|
|
|
11,699 |
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|
|
6,438 |
|
Loss on sale of land and building, net |
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|
— |
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|
|
— |
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|
— |
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|
|
2,196 |
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Automotive operating income |
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|
47,192 |
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|
48,872 |
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|
94,498 |
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|
88,706 |
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Medical |
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Cost of sales |
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|
7,048 |
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|
5,729 |
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|
|
13,147 |
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|
|
12,005 |
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Other operating expenses |
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|
6,850 |
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|
5,846 |
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|
13,035 |
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|
|
11,155 |
|
Medical operating (loss) income |
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|
(2,547 |
) |
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|
(337 |
) |
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(3,291 |
) |
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|
58 |
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Corporate and Other Unallocated Expenses |
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Corporate and other unallocated expenses |
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33,956 |
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24,526 |
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|
69,233 |
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|
47,694 |
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Total consolidated operating income |
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$ |
10,689 |
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$ |
24,009 |
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$ |
21,974 |
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$ |
41,070 |
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Other Segment Disclosures |
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Depreciation and Amortization |
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Automotive |
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$ |
12,335 |
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$ |
11,796 |
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$ |
24,531 |
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$ |
23,398 |
|
Medical |
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|
868 |
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|
851 |
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|
|
1,724 |
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|
1,706 |
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Corporate |
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|
1,320 |
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|
511 |
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|
2,489 |
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|
985 |
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Total |
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$ |
14,523 |
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|
$ |
13,158 |
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$ |
28,744 |
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|
$ |
26,089 |
|
Automotive and Medical segment product revenues by product category for the three and six months ended June 30, 2026 and 2025 were as follows:
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2026 |
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|
2025 |
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|
2026 |
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2025 |
|
Climate Control Seats |
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$ |
217,465 |
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|
$ |
200,020 |
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|
$ |
424,053 |
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$ |
391,173 |
|
Lumbar and Massage Comfort Solutions |
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|
72,588 |
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|
52,530 |
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|
134,849 |
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|
97,843 |
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Climate Control Interiors |
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52,538 |
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|
49,585 |
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|
103,302 |
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|
94,926 |
|
Climate and Comfort Electronics |
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|
8,746 |
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|
5,906 |
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|
17,906 |
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|
13,621 |
|
Automotive Climate and Comfort Solutions |
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|
351,337 |
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|
308,041 |
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|
680,110 |
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|
597,563 |
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Valve Systems |
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|
25,102 |
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|
25,143 |
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|
51,675 |
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|
48,316 |
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Other Automotive |
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|
28,376 |
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|
30,668 |
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|
55,196 |
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|
59,847 |
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Subtotal Automotive segment |
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|
404,815 |
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|
363,852 |
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|
786,981 |
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|
705,726 |
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Medical segment |
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|
11,351 |
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11,238 |
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|
22,891 |
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|
23,218 |
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Total Company |
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$ |
416,166 |
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$ |
375,090 |
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$ |
809,872 |
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$ |
728,944 |
|
Revenue (based on shipment destination) by geographic area for the three and six months ended June 30, 2026 and 2025 is as follows:
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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|
2026 |
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2025 |
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2026 |
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2025 |
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United States |
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$ |
133,065 |
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$ |
126,745 |
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$ |
266,340 |
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$ |
251,671 |
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China |
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|
82,323 |
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|
54,600 |
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|
150,760 |
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|
103,535 |
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Germany |
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33,385 |
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29,181 |
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|
67,010 |
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|
55,738 |
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Czech Republic |
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|
23,390 |
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|
23,692 |
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|
45,400 |
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|
44,676 |
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South Korea |
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|
19,818 |
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|
24,082 |
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|
40,827 |
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|
47,866 |
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Mexico |
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19,220 |
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17,760 |
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|
37,348 |
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|
33,432 |
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Slovakia |
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16,845 |
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|
14,571 |
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|
31,554 |
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|
28,293 |
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Japan |
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12,562 |
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|
11,679 |
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|
24,445 |
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|
27,523 |
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United Kingdom |
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10,968 |
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9,775 |
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|
21,213 |
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|
19,151 |
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Netherlands |
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|
6,099 |
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|
7,767 |
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|
11,890 |
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|
15,212 |
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Other |
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|
58,491 |
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|
55,238 |
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|
113,085 |
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|
101,847 |
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Total Non-U.S. |
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|
283,101 |
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|
248,345 |
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|
543,532 |
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|
477,273 |
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Total Company |
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$ |
416,166 |
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$ |
375,090 |
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$ |
809,872 |
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$ |
728,944 |
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Property and equipment, net, for each of the geographic areas in which the Company operates as of June 30, 2026 and December 31, 2025 is as follows:
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June 30, 2026 |
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December 31, 2025 |
|
Property and equipment, net |
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|
|
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|
Mexico |
|
$ |
51,133 |
|
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$ |
50,506 |
|
China |
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|
45,106 |
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|
47,414 |
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Germany |
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|
43,209 |
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|
|
50,761 |
|
United States |
|
|
37,371 |
|
|
|
40,361 |
|
Vietnam |
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|
31,328 |
|
|
|
19,110 |
|
North Macedonia |
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|
27,878 |
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|
29,375 |
|
Hungary |
|
|
8,869 |
|
|
|
8,617 |
|
Czech Republic |
|
|
8,810 |
|
|
|
10,513 |
|
Ukraine |
|
|
5,465 |
|
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|
5,467 |
|
Morocco |
|
|
4,838 |
|
|
|
4,436 |
|
Other |
|
|
4,773 |
|
|
|
4,054 |
|
Total |
|
$ |
268,780 |
|
|
$ |
270,614 |
|
|