8. Business SegmentsThe Company has three reportable segments – United States, Canada and International. These segments were determined primarily based on geographic markets. The Chief Operating Decision Maker (“CODM”) uses operating profit to evaluate segment performance and allocate resources. Operating profit is revenue less cost of products, selling, general and administrative expenses and impairment and other charges. The Company’s President and Chief Executive Officer has been identified as the CODM. The Company has disclosed for each reportable segment the significant expense categories that are reviewed by the CODM in the tables below and there are no additional significant expenses within the expense categories presented. The following table presents results of operations of the Company’s reportable segments (in millions):
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United States |
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Canada |
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International |
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Total |
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Three months ended June 30, 2026 |
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Revenue |
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$ |
1,109 |
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|
$ |
47 |
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|
$ |
151 |
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|
$ |
1,307 |
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Cost of products |
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|
916 |
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|
36 |
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|
112 |
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|
|
1,064 |
|
Gross Profit |
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|
193 |
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|
11 |
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|
|
39 |
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|
243 |
|
Selling, general and administrative expenses |
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|
197 |
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|
10 |
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|
31 |
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|
|
238 |
|
Impairment and other charges |
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|
4 |
|
|
|
— |
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|
|
— |
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|
|
4 |
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Operating (loss) profit |
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$ |
(8 |
) |
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$ |
1 |
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$ |
8 |
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|
1 |
|
Other expense |
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(10 |
) |
Loss before income taxes |
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$ |
(9 |
) |
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Six months ended June 30, 2026 |
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Revenue |
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$ |
2,094 |
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|
$ |
98 |
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|
$ |
298 |
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|
$ |
2,490 |
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Cost of products |
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|
1,755 |
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|
|
75 |
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|
|
224 |
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|
|
2,054 |
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Gross Profit |
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|
339 |
|
|
|
23 |
|
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|
74 |
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|
436 |
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Selling, general and administrative expenses |
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|
397 |
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|
21 |
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|
63 |
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|
481 |
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Impairment and other charges |
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|
4 |
|
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|
— |
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— |
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|
4 |
|
Operating (loss) profit |
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$ |
(62 |
) |
|
$ |
2 |
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$ |
11 |
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|
(49 |
) |
Other expense |
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|
|
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|
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(20 |
) |
Loss before income taxes |
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$ |
(69 |
) |
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Three months ended June 30, 2025 |
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Revenue |
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$ |
528 |
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$ |
48 |
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$ |
52 |
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$ |
628 |
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Cost of products |
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|
422 |
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|
36 |
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|
41 |
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|
499 |
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Gross Profit |
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|
106 |
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|
12 |
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|
11 |
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|
129 |
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Selling, general and administrative expenses |
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|
91 |
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|
12 |
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|
9 |
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|
112 |
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Operating profit |
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$ |
15 |
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|
$ |
— |
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|
$ |
2 |
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|
17 |
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Other income |
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— |
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Income before income taxes |
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$ |
17 |
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Six months ended June 30, 2025 |
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Revenue |
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$ |
1,002 |
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|
$ |
110 |
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|
$ |
115 |
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$ |
1,227 |
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Cost of products |
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|
786 |
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|
82 |
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|
92 |
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|
|
960 |
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Gross Profit |
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|
216 |
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|
|
28 |
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|
23 |
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|
267 |
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Selling, general and administrative expenses |
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|
180 |
|
|
|
24 |
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|
17 |
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|
221 |
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Operating profit |
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$ |
36 |
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|
$ |
4 |
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$ |
6 |
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|
46 |
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Other income |
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— |
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Income before income taxes |
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|
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$ |
46 |
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The following table presents depreciation and amortization of the Company’s reportable segments (in millions):
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Three months ended June 30, |
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Six months ended June 30, |
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|
2026 |
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|
2025 |
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|
2026 |
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|
2025 |
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Depreciation and amortization |
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United States |
$ |
22 |
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|
$ |
10 |
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$ |
44 |
|
|
$ |
20 |
|
Canada |
|
1 |
|
|
|
— |
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|
|
1 |
|
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|
1 |
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International |
|
— |
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|
— |
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|
1 |
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— |
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Total |
$ |
23 |
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|
$ |
10 |
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$ |
46 |
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|
$ |
21 |
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The following table presents property, plant and equipment, net and total assets of the Company’s reportable segments (in millions):
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June 30, 2026 |
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December 31, 2025 |
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Property, plant and equipment, net |
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United States |
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$ |
233 |
|
|
$ |
237 |
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Canada |
|
|
8 |
|
|
|
10 |
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International |
|
|
16 |
|
|
|
17 |
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Total |
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$ |
257 |
|
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$ |
264 |
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Total assets |
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United States |
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$ |
3,207 |
|
|
$ |
3,222 |
|
Canada |
|
|
130 |
|
|
|
166 |
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International |
|
|
479 |
|
|
|
536 |
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Total |
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$ |
3,816 |
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|
$ |
3,924 |
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