4. Restructuring

On March 6, 2025, the Company announced the launch of a 'Focused Transformation' initiative with a target to implement $20 million of annualized cost savings, primarily in SG&A, by year-end 2025. In conjunction with the program the Company incurred $2.1 million and $2.4 million of restructuring charges during the quarter and six months ended June 30, 2025, respectively, which were recorded within both Cost of sales and Selling, general and administrative. Accrued and unpaid restructuring expenses were $0.6 million at December 31, 2025.

On July 31, 2025, the Company announced as part of its Focused Transformation initiatives, a plan to idle two of its rotational molding production facilities and to consolidate that production into other facilities. In conjunction with this initiative the Company incurred $0.9 million and $1.5 million of restructuring charges during the quarter and six months ended June 30, 2026, respectively, which were recorded within both Cost of sales and Selling, general and administrative. Accrued and unpaid restructuring expenses were not significant at June 30, 2026 or December 31, 2025 and the Company expects to incur up to $9.4 million in restructuring costs to complete the initiative, including costs related to machine moves, asset impairments and costs related to the long-term facility leases.

Charges from other restructuring initiatives to reduce and streamline overhead costs for the quarter and six months ended June 30, 2025 totaled $0.7 million and $1.5 million, respectively, which were recorded within both Cost of sales and Selling, general and administrative. Accrued and unpaid restructuring expenses were $0.2 million at December 31, 2025.