v3.26.1
Segments and Concentrations (Tables)
 6 Months Ended
Jun. 30, 2026
Risks and Uncertainties [Abstract]  
Summary of net sales by region
Sales concentration - Net sales by region (determined based on country of shipment) and product line are as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(Dollars in millions)
United States$174 $178 $353 $354 
Europe
     Germany116 86 209 175 
     United Kingdom88 92 183 177 
     Rest of Europe305 283 620 534 
Asia
     China159 151 326 304 
     Rest of Asia102 99 212 203 
Other International32 24 58 44 
$976 $913 $1,961 $1,791 
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(Dollars in millions)
Diesel$235 $217 $467 $425 
Gas416 398 859 801 
Commercial Vehicles / Industrial188 170 369 325 
Aftermarket119 111 233 209 
Other18 17 33 31 
$976 $913 $1,961 $1,791 
Schedule of segment reporting information, by segment
The table below provides segment information about the Company:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(Dollars in millions)
Net sales$976 $913 $1,961 $1,791 
Less:
   Material costs552 513 1,115 1,014 
   Variable manufacturing costs (1)
108 123 225 221 
   Fixed manufacturing costs (2)
60 51 133 110 
   RD&E costs44 45 81 85 
   Selling, general and administrative costs63 59 121 118 
   Interest expense24 25 51 54 
   Income tax expense25 15 48 38 
   Other segment items (3)
(1)(5)(9)2 
Consolidated net income$101 $87 $196 $149 
(1) Variable manufacturing costs include freight, duties and tariffs, direct and indirect labor costs, repairs and maintenance, and variable overhead costs.
(2) Fixed manufacturing costs include depreciation and amortization, rent, overhead labor costs, repositioning costs, utilities, and other fixed costs.
(3) Other segment items consist of non-service components of net periodic pension expense, interest income, equity income and other non-operating income items (if any).