v3.26.1
Segment Data
 12 Months Ended
May 31, 2026
Segment Reporting [Abstract]  
Segment Data

Note O – Segment Data

 

Our operations are organized under two operating segments: Building Products and Consumer Products. These operating segments correspond directly with our reportable segments, as described further below. Activity outside of our two operating segments is presented within Other and Unallocated Corporate, as described further below.

 

Our segment structure reflects the manner in which internally reported financial information is regularly reviewed by our CODM, who is our President and CEO, to evaluate the performance and allocate resources. Operating segments are identified based on the nature of the products and services offered, the management reporting structure, similarity of economic characteristics and certain quantitative measures as prescribed by authoritative accounting guidance. The CODM evaluates segment performance and makes resource allocation decisions based on adjusted EBITDA from continuing operations. Adjusted EBITDA from continuing operations is a non-GAAP financial measure, as described in the “Use of Non-GAAP Financial Measures” section preceding Part I, Item 1 of this Form 10-K. At the operating segment level, adjusted EBITDA from continuing operations excludes public company and other governance-related costs.

 

Building Products: Our Building Products segment is a market-leading provider of critical components in essential categories, including: (i) pressurized containment solutions for heating, cooking, cooling and water applications; (ii) HVAC systems; (iii) metal roofing clips; and (iv), through our unconsolidated joint ventures, WAVE and ClarkDietrich, ceiling suspension systems and light gauge metal framing products. Our pressurized containment solutions include refrigerant and LPG cylinders, well water and expansion tanks, and other specialty products which are generally sold to gas producers and distributors. Refrigerant gas cylinders are used to hold refrigerant gases for commercial, residential, and automotive air conditioning and refrigeration systems. LPG cylinders hold fuel for residential and light commercial heating systems, barbeque grills and recreational vehicle equipment, industrial forklifts and commercial/residential cooking (the latter, generally outside North America). Well water tanks and expansion tanks are used primarily in the residential market with certain products also sold to commercial markets. Specialty products include a variety of fire suppression tanks, chemical tanks, and foam and adhesive tanks. In fiscal 2026, Building Products generated approximately 62% of our consolidated net sales, compared to 57% and 50% in fiscal 2025 and fiscal 2024, respectively.

 

Consumer Products: Our Consumer Products segment has a diverse product offering in the tools, outdoor living and celebrations categories, including propane-filled cylinders for torches and related accessories, handheld torches, specialized hand tools and instruments, drywall tools, propane-filled camping cylinders, helium-filled balloon kits, and accessories and gas griddles and pizza ovens sold primarily to mass merchandisers, retailers and distributors. In fiscal 2026, Consumer Products generated approximately 38% of our consolidated net sales, compared to 43% and 40% in fiscal 2025 and fiscal 2024, respectively. Approximately 28% of fiscal 2026 Consumer Products net sales was attributable to our largest customer. Sales to this same customer accounted for approximately 10% of our consolidated net sales in fiscal 2026.

 

Other: Includes the activity of our SES and Workhorse unconsolidated joint ventures, as well as the activity of our former Sustainable Energy Solutions operating segment, on an historical basis, through May 29, 2024, when 51% of the nominal share capital was sold triggering the deconsolidation of corresponding net assets. Upon closing, this business, as historically operated, is no longer part of our management structure and therefore is not presented separately as a reportable segment.

 

Unallocated Corporate: Includes certain assets and liabilities (e.g., cash and cash equivalents and public debt) held at the corporate level as well as general corporate expenses that are not directly attributable to our business operations and are administrative in nature, such as public company and other governance-related costs that benefit the organization as a whole, have not been allocated to our operating segments and are held at the corporate level, including direct and incremental costs incurred in connection with the Separation but not attributed to discontinued operations in fiscal 2024.

 

The accounting policies of the operating segments are described in “Note A – Summary of Significant Accounting Policies.” Inter-segment sales are not material.

 

The following tables present financial information for both of our operating segments, consistent with the level of disaggregation regularly reviewed by the CODM for performance evaluation and resource allocation.

 

2026

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Building

 

 

Consumer

 

 

Reportable

 

 

 

 

 

Unallocated

 

 

 

 

 

Products

 

 

Products

 

 

Segments

 

 

Other

 

 

Corporate

 

 

Consolidated

 

Net sales

$

861,456

 

 

$

519,836

 

 

$

1,381,292

 

 

$

-

 

 

$

-

 

 

$

1,381,292

 

Cost of goods sold

 

665,637

 

 

 

337,266

 

 

 

1,002,903

 

 

 

-

 

 

 

114

 

 

 

1,003,017

 

SG&A

 

144,486

 

 

 

110,975

 

 

 

255,461

 

 

 

-

 

 

 

39,505

 

 

 

294,966

 

Restructuring and other expense, net

 

1,074

 

 

 

10

 

 

 

1,084

 

 

 

-

 

 

 

6,016

 

 

 

7,100

 

Other segment items (1)

 

55

 

 

 

8

 

 

 

63

 

 

 

3,925

 

 

 

5,504

 

 

 

9,492

 

Equity in net income of unconsolidated affiliates

 

139,940

 

 

 

-

 

 

 

139,940

 

 

 

(5,309

)

 

 

-

 

 

 

134,631

 

Earnings (loss) before income taxes from continuing operations

$

190,144

 

 

$

71,577

 

 

$

261,721

 

 

$

(9,234

)

 

$

(51,139

)

 

$

201,348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciling items to adjusted EBITDA from continuing operations (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of inventory step-up

$

5,151

 

 

$

-

 

 

$

5,151

 

 

$

-

 

 

$

-

 

 

$

5,151

 

Depreciation and amortization

 

40,684

 

 

 

15,789

 

 

 

56,473

 

 

 

-

 

 

 

799

 

 

 

57,272

 

Interest expense (income)

 

383

 

 

 

(6

)

 

 

377

 

 

 

-

 

 

 

5,871

 

 

 

6,248

 

Stock-based compensation

 

2,874

 

 

 

2,737

 

 

 

5,611

 

 

 

-

 

 

 

8,123

 

 

 

13,734

 

Restructuring and other expense, net

 

1,074

 

 

 

10

 

 

 

1,084

 

 

 

-

 

 

 

6,016

 

 

 

7,100

 

Non-cash losses in miscellaneous expense, net

 

-

 

 

 

-

 

 

 

-

 

 

 

3,925

 

 

 

-

 

 

 

3,925

 

Net loss attributable to noncontrolling interest

 

-

 

 

 

1,050

 

 

 

1,050

 

 

 

-

 

 

 

-

 

 

 

1,050

 

Adjusted EBITDA from continuing operations

$

240,310

 

 

$

91,157

 

 

$

331,467

 

 

$

(5,309

)

 

$

(30,330

)

 

$

295,828

 

 

 

2025

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Building

 

 

Consumer

 

 

Reportable

 

 

 

 

 

Unallocated

 

 

 

 

 

Products

 

 

Products

 

 

Segments

 

 

Other

 

 

Corporate

 

 

Consolidated

 

Net sales

$

654,137

 

 

$

499,625

 

 

$

1,153,762

 

 

$

-

 

 

$

-

 

 

$

1,153,762

 

Cost of goods sold

 

510,962

 

 

 

323,659

 

 

 

834,621

 

 

 

-

 

 

 

106

 

 

 

834,727

 

SG&A

 

116,183

 

 

 

114,681

 

 

 

230,864

 

 

 

-

 

 

 

37,549

 

 

 

268,413

 

Impairment of long-lived assets

 

763

 

 

 

50,050

 

 

 

50,813

 

 

 

-

 

 

 

-

 

 

 

50,813

 

Restructuring and other expense, net

 

1,500

 

 

 

-

 

 

 

1,500

 

 

 

-

 

 

 

9,024

 

 

 

10,524

 

Other segment items (1)

 

(780

)

 

 

27

 

 

 

(753

)

 

 

5,000

 

 

 

1,065

 

 

 

5,312

 

Equity in net income of unconsolidated affiliates

 

150,895

 

 

 

-

 

 

 

150,895

 

 

 

(6,059

)

 

 

-

 

 

 

144,836

 

Earnings (loss) before income taxes from continuing operations

$

176,404

 

 

$

11,208

 

 

$

187,612

 

 

$

(11,059

)

 

$

(47,744

)

 

$

128,809

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciling items to adjusted EBITDA from continuing operations (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of inventory step-up

$

1,477

 

 

$

-

 

 

$

1,477

 

 

$

-

 

 

$

-

 

 

$

1,477

 

Depreciation and amortization

 

30,070

 

 

 

17,418

 

 

 

47,488

 

 

 

-

 

 

 

774

 

 

 

48,262

 

Interest (income) expense

 

(78

)

 

 

-

 

 

 

(78

)

 

 

-

 

 

 

2,168

 

 

 

2,090

 

Stock-based compensation

 

2,695

 

 

 

2,917

 

 

 

5,612

 

 

 

-

 

 

 

7,909

 

 

 

13,521

 

Impairment of long-lived assets

 

763

 

 

 

50,050

 

 

 

50,813

 

 

 

-

 

 

 

-

 

 

 

50,813

 

Restructuring and other expense, net

 

1,500

 

 

 

-

 

 

 

1,500

 

 

 

-

 

 

 

9,024

 

 

 

10,524

 

Non-cash losses in miscellaneous expense, net

 

-

 

 

 

-

 

 

 

-

 

 

 

5,000

 

 

 

-

 

 

 

5,000

 

Non-recurring loss in equity income

 

-

 

 

 

-

 

 

 

-

 

 

 

3,387

 

 

 

-

 

 

 

3,387

 

Net loss attributable to noncontrolling interest

 

-

 

 

 

1,083

 

 

 

1,083

 

 

 

-

 

 

 

-

 

 

 

1,083

 

Adjusted EBITDA from continuing operations

$

212,831

 

 

$

82,676

 

 

$

295,507

 

 

$

(2,672

)

 

$

(27,869

)

 

$

264,966

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Building

 

 

Consumer

 

 

Reportable

 

 

 

 

 

Unallocated

 

 

 

 

 

Products

 

 

Products

 

 

Segments

 

 

Other

 

 

Corporate

 

 

Consolidated

 

Net sales

$

618,973

 

 

$

495,259

 

 

$

1,114,232

 

 

$

131,471

 

 

$

-

 

 

$

1,245,703

 

Cost of goods sold

 

497,311

 

 

 

335,069

 

 

 

832,380

 

 

 

129,061

 

 

 

(757

)

 

 

960,684

 

SG&A

 

107,009

 

 

 

113,960

 

 

 

220,969

 

 

 

16,259

 

 

 

46,243

 

 

 

283,471

 

Impairment of goodwill and long-lived assets

 

772

 

 

 

-

 

 

 

772

 

 

 

32,203

 

 

 

-

 

 

 

32,975

 

Restructuring and other expense (income), net

 

714

 

 

 

(2,000

)

 

 

(1,286

)

 

 

30,613

 

 

 

-

 

 

 

29,327

 

Separation costs

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

12,705

 

 

 

12,705

 

Other segment items (1)

 

(88

)

 

 

78

 

 

 

(10

)

 

 

17,799

 

 

 

2,461

 

 

 

20,250

 

Equity in net income of unconsolidated affiliates

 

163,126

 

 

 

-

 

 

 

163,126

 

 

 

4,590

 

 

 

-

 

 

 

167,716

 

Earnings (loss) before income taxes from continuing operations

$

176,381

 

 

$

48,152

 

 

$

224,533

 

 

$

(89,874

)

 

$

(60,652

)

 

$

74,007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciling items to adjusted EBITDA from continuing operations (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of inventory step-up

$

-

 

 

$

50

 

 

$

50

 

 

$

-

 

 

$

-

 

 

$

50

 

Depreciation and amortization

 

23,805

 

 

 

16,512

 

 

 

40,317

 

 

 

7,283

 

 

 

1,063

 

 

 

48,663

 

Interest expense

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,587

 

 

 

1,587

 

Stock-based compensation

 

2,826

 

 

 

1,964

 

 

 

4,790

 

 

 

-

 

 

 

8,365

 

 

 

13,155

 

Corporate costs eliminated at separation

 

4,650

 

 

 

4,707

 

 

 

9,357

 

 

 

-

 

 

 

9,986

 

 

 

19,343

 

Impairment of goodwill and long-lived assets

 

772

 

 

 

-

 

 

 

772

 

 

 

32,203

 

 

 

-

 

 

 

32,975

 

Restructuring and other expense (income), net

 

714

 

 

 

(2,000

)

 

 

(1,286

)

 

 

30,613

 

 

 

-

 

 

 

29,327

 

Separation costs

 

-

 

 

 

 

 

 

-

 

 

 

-

 

 

 

12,705

 

 

 

12,705

 

Non-cash losses in miscellaneous income

 

-

 

 

 

-

 

 

 

-

 

 

 

19,180

 

 

 

-

 

 

 

19,180

 

Non-recurring (gain) loss in equity income

 

980

 

 

 

-

 

 

 

980

 

 

 

(2,720

)

 

 

-

 

 

 

(1,740

)

Loss on extinguishment on debt

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,534

 

 

 

1,534

 

Net loss attributable to noncontrolling interest

 

-

 

 

 

263

 

 

 

263

 

 

 

-

 

 

 

-

 

 

 

263

 

Adjusted EBITDA from continuing operations

$

210,128

 

 

$

69,648

 

 

$

279,776

 

 

$

(3,315

)

 

$

(25,412

)

 

$

251,049

 

 

 

 

 
(1)
Except as noted herein, Other segment items consist of non-operating activity included in adjusted EBITDA from continuing operations. In fiscal 2026 Other segment items also included certain non-cash losses in Miscellaneous expense, net related to the divestiture of the composite assets of our SES joint venture, including the unrealized loss on the common shares of Hexagon Composites and Hexagon Purus that we received as consideration. These charges were excluded from adjusted EBITDA from continuing operations as shown in the Reconciling items to adjusted EBITDA from continuing operations section in the tables above for fiscal 2026. See “Use of Non-GAAP Financial Measures and Definitions” for additional information.
(2)
See “Use of Non-GAAP Financial Measures and Definitions” for additional information.

 

 

 

Total assets for each of our operating segments as of the end of the past two fiscal years were as follows:

 

 

 

 

May 31,

 

 

 

 

2026

 

 

2025

 

Building Products

 

 

$

1,170,522

 

 

$

795,837

 

Consumer Products

 

 

 

535,693

 

 

 

531,187

 

Total reportable segments

 

 

 

1,706,215

 

 

 

1,327,024

 

Unallocated Corporate and Other

 

 

 

141,849

 

 

 

368,128

 

Total

 

 

$

1,848,064

 

 

$

1,695,152

 

 

The following table presents property, plant and equipment, net, by geographic region as of the end of the past two fiscal years:

 

 

 

 

May 31,

 

 

 

 

2026

 

 

2025

 

United States

 

 

$

259,854

 

 

$

223,117

 

International

 

 

 

51,040

 

 

 

47,109

 

Total

 

 

$

310,894

 

 

$

270,226

 

 

The following table presents net sales by geographic region for the past three fiscal years:

 

 

2026

 

 

2025

 

 

2024

 

United States

$

1,216,926

 

 

$

891,428

 

 

$

923,556

 

International

 

164,366

 

 

 

262,334

 

 

 

322,147

 

Total

$

1,381,292

 

 

$

1,153,762

 

 

$

1,245,703

 

 

The following table presents capital expenditures for each of our reportable segments for the past three fiscal years:

 

 

2026

 

 

2025

 

 

2024

 

Building Products

$

23,325

 

 

$

15,050

 

 

$

14,447

 

Consumer Products

 

29,680

 

 

 

28,330

 

 

 

20,945

 

Total reportable segments

 

53,005

 

 

 

43,380

 

 

 

35,392

 

Unallocated Corporate

 

2,908

 

 

 

7,200

 

 

 

12,029

 

Total

$

55,913

 

 

$

50,580

 

 

$

47,421