Investments

6 Months Ended

Jun. 30, 2026

Equity Method Investments and Joint Ventures [Abstract]

Investments:

Unconsolidated Joint Ventures

Following the completion of the Refining Solutions Business Transaction discussed in Note 2, “Divestitures,” the Company retained an initial 49% ownership interest in the Ketjen joint venture. The Company’s valuation of its investment in this Ketjen joint venture was measured using the Black-Scholes option-pricing model using key assumptions such as equity volatility, a risk-free rate and certain terms of the joint venture agreement. This nonrecurring fair value measurement is classified as Level 3 within the fair value hierarchy due to the unobservable inputs used. The Company’s investment in this unconsolidated joint venture is reported within Investments on the consolidated balance sheet, and its equity in net income of unconsolidated investments (net of tax) is included within Other joint ventures in the below table. In addition, the Company divested all of its direct ownership interests in Nippon Ketjen Company Limited and Fábrica Carioca de Catalisadores S.A., joint ventures included in the Refining Solutions Business Transaction. The investment balances for these unconsolidated investments were reported within Noncurrent assets held for sale at December 31, 2025.

In a separate transaction, on January 23, 2026, the Company divested its 50% ownership interest in the Eurecat S.A joint venture and recorded a gain of $42.3 million in Other income (expenses), net on the consolidated statements of income during the six-month period ended June 30, 2026.

The following table details the Company’s equity in net income of unconsolidated investments (net of tax) for the three-month and six-month periods ended June 30, 2026 and 2025 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Windfield	$	165,835	$	71,762	$	259,127	$	126,748
Other joint ventures	(14,271)		6,496		(11,270)		15,796
Total	$	151,564	$	78,258	$	247,857	$	142,544

The Company holds a 49% equity interest in Windfield, where the ownership parties share risks and benefits disproportionate to their voting interests. As a result, the Company considers Windfield to be a variable interest entity (“VIE”), however this investment is not consolidated as the Company is not the primary beneficiary. The carrying amount of the Company’s 49% equity interest in Windfield, which is the Company’s most significant VIE, was $985.0 million and $735.3 million at June 30, 2026 and December 31, 2025, respectively. The Company’s unconsolidated VIEs are reported in Investments on the consolidated balance sheets. The Company does not guarantee debt for, or have other financial support obligations to, these entities, and its maximum exposure to loss in connection with its continuing involvement with these entities is limited to the carrying value of the investments.

The following table summarizes the unaudited results of operations for the Windfield joint venture, which met the significant subsidiary test for subsidiaries not consolidated or 50% or less owned persons under Rule 10-01 of Regulation S-X, for the three-month and six-month periods ended June 30, 2026 and 2025 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net sales	$	889,113	$	296,020	$	1,470,170	$	586,439
Gross profit	767,295		169,778		1,220,598		362,482
Income before income taxes	658,794		161,354		1,065,456		306,150
Net income	461,155		112,897		745,819		214,641

Public Equity Securities

Included in the Company’s investments balance are holdings in equity securities of public companies. The fair value is measured using publicly available share prices of the investments, with any changes reported in Other income (expenses), net in

our consolidated statements of income. During the three-month and six-month periods ended June 30, 2026, the Company recorded unrealized mark-to-market gains of $6.5 million and $1.0 million, respectively, in Other income (expenses), net for all public equity securities held at the end of the balance sheet date. During the three-month and six-month periods ended June 30, 2025, the Company recorded unrealized mark-to-market gains (losses) of $0.2 million and ($4.8) million, respectively, in Other income (expenses), net for all public equity securities held at the end of the balance sheet date.