v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
We have three reportable segments: Railroad and Utility Products and Services (RUPS), Performance Chemicals (PC) and Carbon Materials and Chemicals (CMC). Our reportable segments contain multiple aggregated business units since management believes the long-term financial performance of these business units is affected by similar economic conditions. The reportable segments are each managed separately because they manufacture and distribute distinct products with different production processes.
Our RUPS segment primarily sells pressure-treated railroad ties to the railroad industry and treated utility poles to utility markets. Railroad products and services include procuring and treating items such as crossties, switch ties and various types of lumber used for railroad bridges and crossings. Utility products include the pressure treatment of transmission and distribution poles for electric, telephone and broadband utilities. In addition, we provide untreated wood products and rail joint bars, which are steel bars used to join rails together for railroads, to the railroad markets. We also operate a business related to the recovery of used crossties, serving the same customer base as our North American railroad business.
Our PC segment develops, manufactures, and markets wood preservation chemicals and wood treatment technologies and services to a diverse range of end-markets including residential, industrial, commercial construction and agricultural applications.
Our CMC segment is primarily a manufacturer of creosote, carbon pitch, naphthalene and carbon black feedstock. Creosote is used in the treatment of wood and carbon black feedstock is used in the production of carbon black. Carbon pitch is a critical raw material used in the production of aluminum and steel. Naphthalene is used as a surfactant in the production of concrete. See Note 2 - Restructuring for further discussion of the discontinuation of distillation and chemical manufacturing operations in Stickney, Illinois.
Our measure of segment profitability is adjusted income before interest expense, income taxes, depreciation, amortization and certain non-cash and/or non-recurring items that do not contribute directly to management’s evaluation of our operating results (as defined by us, adjusted EBITDA). These non-cash and/or non-recurring items typically include last-in, first-out (LIFO) inventory effects, impairment, restructuring and plant closure costs, significant gains or losses on sale of assets, mark-to-market commodity hedging, acquisition-related charges, amortization of cloud-based software implementation costs and other unusual items. This presentation is consistent with how our chief operating decision maker evaluates the results of operations and makes strategic decisions about the business. In addition, adjusted EBITDA is the primary measure used to determine the level of achievement of management’s short-term incentive goals and related payout, as well as one of the measures used to determine performance and related payouts for certain performance share units granted to management prior to 2026. For these reasons, we believe that adjusted EBITDA represents the most relevant measure of segment profit and loss.
Adjusted EBITDA is reconciled to net income on a consolidated basis, the most directly comparable financial measure determined and reported in accordance with U.S. generally accepted accounting principles (U.S. GAAP). The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Intersegment transactions are eliminated in consolidation.
Contract Balances – The timing of revenue recognition results in both billed accounts receivable and unbilled receivables, both classified as accounts receivable, net of allowance within the condensed consolidated balance sheet. Contract assets of $1.8 million for both periods are recorded within accounts receivable, net of allowance within the condensed consolidated balance sheet as of June 30, 2026 and December 31, 2025.
Segment Revenues for Significant Product Lines
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
(Dollars in millions)
Railroad and Utility Products and Services:
Railroad treated products$147.3 $150.9 $281.5 $297.2 
Utility poles86.7 75.8 161.5 143.7 
Railroad infrastructure products and services11.9 23.7 22.9 44.5 
Total Railroad and Utility Products and Services$245.9 $250.4 $465.9 $485.4 
Performance Chemicals:
Wood preservative products and other$168.2 $150.8 $310.3 $271.7 
Carbon Materials and Chemicals:
Pitch and related products$75.0 $74.4 $145.2 $139.6 
Carbon black feedstock and distillates22.9 14.4 36.7 28.6 
Naphthalene, phthalic anhydride, and other chemicals8.1 14.8 17.3 36.0 
Total Carbon Materials and Chemicals$106.0 $103.6 $199.2 $204.2 
Total$520.1 $504.8 $975.4 $961.3 
Segment Expenses
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
(Dollars in millions)
Cost of sales:
Railroad and Utility Products and Services$204.2 $201.8 $380.2 $392.5 
Performance Chemicals119.3 108.6 229.5 187.6 
Carbon Materials and Chemicals87.6 80.2 170.1 161.2 
Total$411.1 $390.6 $779.8 $741.3 
Selling, general and administrative expenses:
Railroad and Utility Products and Services$17.2 $17.1 $35.5 $35.3 
Performance Chemicals14.7 15.4 29.6 30.5 
Carbon Materials and Chemicals9.0 7.0 17.5 14.8 
Total$40.9 $39.5 $82.6 $80.6 
Other (income) expense to reconcile to Adjusted EBITDA(1):
Railroad and Utility Products and Services$(1.2)$(0.1)$1.9 $0.5 
Performance Chemicals(3.5)(1.9)(12.3)4.8 
Carbon Materials and Chemicals1.8 (0.4)3.1 1.5 
Total$(2.9)$(2.4)$(7.3)$6.8 
Adjusted EBITDA:
Railroad and Utility Products and Services$25.7 $31.6 $48.3 $57.1 
Performance Chemicals37.7 28.7 63.5 48.8 
Carbon Materials and Chemicals7.6 16.8 8.5 26.7 
Total$71.0 $77.1 $120.3 $132.6 
(1)Other (income) expense amounts primarily relate to miscellaneous (income) expense and the adjustments to reconcile to adjusted EBITDA such as acquisition-related charges, LIFO inventory effects and mark-to-market commodity hedging.
Segment Adjusted EBITDA
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
(Dollars in millions)
Adjusted EBITDA:
Railroad and Utility Products and Services$25.7 $31.6 $48.3 $57.1 
Performance Chemicals37.7 28.7 63.5 48.8 
Carbon Materials and Chemicals7.6 16.8 8.5 26.7 
Items excluded from the determination of segment profit:
Acquisition inventory step-up amortization(0.5)0.0 (0.8)0.0 
Amortization of cloud-based software implementation costs
(0.7)(0.5)(1.2)(0.8)
(Loss) gain on sale of assets(0.4)0.0 3.9 0.3 
Impairment, restructuring and plant closure costs(1)
(215.8)(17.6)(223.6)(37.6)
LIFO benefit(2)
2.3 0.7 3.5 2.5 
Mark-to-market commodity hedging (losses) gains(3.0)0.7 (6.9)9.8 
Pension settlement and expense0.0 (1.2)0.0 (30.2)
Depreciation and amortization(17.9)(18.0)(37.3)(36.0)
Interest expense(15.0)(17.3)(30.0)(33.9)
Income tax benefit (provision)32.5 (7.5)31.7 (4.2)
Net (loss) income$(147.5)$16.4 $(140.4)$2.5 
(1)See Note 2 - Restructuring.
(2)The LIFO expense adjustment removes the entire impact of LIFO and effectively reflects the results as if we were on a first-in, first-out (FIFO) inventory basis.
Other Segment Disclosures
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
(Dollars in millions)
Intersegment revenues:
Performance Chemicals$8.5 $7.9 $15.7 $14.8 
Carbon Materials and Chemicals28.1 23.2 51.2 45.4 
Total$36.6 $31.1 $66.9 $60.2 
Depreciation and amortization expense:
Railroad and Utility Products and Services$8.2 $8.5 $16.4 $17.0 
Performance Chemicals4.0 4.1 8.3 7.9 
Carbon Materials and Chemicals5.7 5.4 12.6 11.1 
Total$17.9 $18.0 $37.3 $36.0 
Capital expenditures:
Railroad and Utility Products and Services$5.1 $4.2 $10.5 $9.3 
Performance Chemicals4.0 2.4 6.8 5.9 
Carbon Materials and Chemicals2.9 5.2 5.9 10.2 
Corporate0.3 0.3 0.5 1.0 
Total$12.3 $12.1 $23.7 $26.4 
Segment Assets
June 30, 2026December 31, 2025
(Dollars in millions)
Segment assets:
Railroad and Utility Products and Services$833.5 $827.5 
Performance Chemicals557.5 536.6 
Carbon Materials and Chemicals(1)
305.1 486.7 
Corporate26.2 36.0 
Total$1,722.3 $1,886.8 
Goodwill:
Railroad and Utility Products and Services$156.5 $156.4 
Performance Chemicals172.6 173.0 
Total$329.1 $329.4 
(1)See Note 2 - Restructuring.