The Company undertakes restructuring activities as necessary to streamline operations, improve efficiency and reduce costs in response to business needs and industry conditions. These activities generally relate to the realignment of existing operations and resources to support the Company’s strategic objectives. Related charges are recorded within “Selling, general and administrative” expenses in the Company’s condensed consolidated statements of income.

In the third quarter of 2026, the Company initiated a restructuring program affecting the Manufacturing segment. The program is primarily focused on aligning our manufacturing footprint and workforce with demand and consolidating underutilized operations while preserving capacity to support customers and future growth. The Company expects the program to be substantially complete by the second quarter of 2027.

Total program costs are expected to be approximately $4.5 million. During each of the three and nine months ended September 27, 2026, the Company recorded restructuring charges totaling $2.0 million, consisting of $0.8 million of costs relating to employee termination benefits and $1.2 million of contract termination and other costs. These amounts represent cumulative charges incurred since the program’s inception. The remaining expected charges of approximately $2.5 million are expected to be incurred through the second quarter of 2027.

The Company made cash payments related to the restructuring program of approximately $0.8 million during the nine months ended September 27, 2026. The remaining restructuring liability of approximately $1.2 million at September 27, 2026 is included in “Accrued liabilities” in the Company’s condensed consolidated balance sheets and is expected to be paid by December 31, 2026.

The restructuring charges of $2.0 million in both the three and nine months ended September 27, 2026, relate to the Manufacturing reportable segment, with no restructuring charges in the comparable 2025 periods.

The table below summarizes the activity in the restructuring liability for the nine months ended September 27, 2026:


($ in thousands)	Employee Termination Costs Liability		Contract Termination and Other Costs		Total
Balance at December 31, 2025	$	—	$	—	$	—
Provision for estimated expenses incurred during the period	776		1,225		2,001
Payments made during the period	(776)		—		(776)

Balance at September 27, 2026	$	—	$	1,225	$	1,225