The Company’s restructuring activities are undertaken as necessary to execute the Company’s strategy and streamline operations, consolidate and take advantage of available capacity and resources, and ultimately achieve net cost reductions. During the six months ended June 30, 2026, the Company has continued to implement actions as part of a strategic effort to align its legacy infrastructure with current business needs and reduce costs in response to ongoing industry headwinds. Beginning in 2025 and

continuing through 2027, the Company anticipates incurring an aggregate of approximately $40 million in restructuring charges under these initiatives, with estimated annual savings of $30 million once fully implemented. As of June 30, 2026, the Company has recognized $20 million of restructuring expense related to these initiatives.

The Company’s restructuring expenses consist primarily of employee termination benefits (principally severance and/or other termination benefits) and other costs, which are primarily information technology infrastructure right-sizing.

The following table displays a roll forward of the restructuring liability recorded within the Company’s Condensed Consolidated Balance Sheets and the related cash flow activity:


(in millions)	Employee termination benefits		Other		Total
Balance at January 1, 2026	$	5	$	1	$	6
Restructuring expense, net	3		8		11
Cash payments	(5)		(6)		(11)

Balance at June 30, 2026	3		3		6
Less: Non-current restructuring liability	1		—		1
Current restructuring liability at June 30, 2026	$	2	$	3	$	5


(in millions)	Employee termination benefits		Other		Total
Balance at January 1, 2025	$	5	$	1	$	6
Restructuring expense, net	5		2		7
Cash payments	(6)		(1)		(7)
Foreign currency translation adjustment and other	1		(1)		—
Balance at June 30, 2025	5		1		6
Less: Non-current restructuring liability	1		—		1
Current restructuring liability at June 30, 2025	$	4	$	1	$	5

During the six months ended June 30, 2026 and 2025, the Company recorded $11 million and $7 million, respectively, of restructuring costs for individually approved restructuring actions that primarily related to aligning its legacy infrastructure with current business needs and reductions in headcount in the Fuel Systems segment.

During the three months ended June 30, 2026 and 2025, the Company recorded $8 million and $2 million, respectively, of restructuring costs for individually approved restructuring actions that primarily related to aligning its legacy infrastructure with current business needs and reductions in headcount in the Fuel Systems segment.

Estimates of restructuring expense are based on information available at the time such charges are recorded. Due to the inherent uncertainty involved in estimating restructuring expenses, actual amounts paid for such activities may differ from amounts initially recorded. Accordingly, the Company may record revisions of previous estimates by adjusting previously established accruals.

The Company will recognize restructuring expense associated with any future actions at the time they are approved and become probable or are incurred. Any future actions could result in significant restructuring expense and cash payments.