v3.26.3
Segment Reporting (Tables)
9 Months Ended
Oct. 03, 2026
Segment Reporting [Abstract]  
Schedule of financial information by reportable segment

The following table sets forth our segment information of sales, gross profit, significant segment expenses, and operating income from operations for the three months ended October 3, 2026 and September 27, 2025:

 

 

 

Three Months Ended October 3, 2026

 

 

Three Months Ended September 27, 2025

 

 

 

Hydraulics

 

 

Electronics

 

 

Total

 

 

Hydraulics

 

 

Electronics

 

 

Total

 

Net sales

 

$

142.9

 

 

$

86.8

 

 

$

229.7

 

 

$

141.3

 

 

$

79.0

 

 

$

220.3

 

Cost of sales

 

 

(96.8

)

 

 

(56.7

)

 

 

 

 

 

(95.4

)

 

 

(51.9

)

 

 

 

Gross profit

 

 

46.1

 

 

 

30.1

 

 

 

76.2

 

 

 

45.9

 

 

 

27.1

 

 

 

73.0

 

Segment SEA expenses less R&D (a)

 

 

(14.5

)

 

 

(11.6

)

 

 

 

 

 

(16.1

)

 

 

(10.9

)

 

 

 

R&D expenses (b)

 

 

(2.2

)

 

 

(3.6

)

 

 

 

 

 

(2.1

)

 

 

(2.2

)

 

 

 

Goodwill impairment

 

 

—

 

 

 

—

 

 

 

 

 

 

—

 

 

 

(25.9

)

 

 

 

Indirect SEA expenses (c)

 

 

(4.7

)

 

 

(2.5

)

 

 

 

 

 

(3.5

)

 

 

(1.8

)

 

 

 

Segment operating income

 

 

24.7

 

 

 

12.4

 

 

 

37.1

 

 

 

24.2

 

 

 

(13.7

)

 

 

10.5

 

Reconciliation of segment operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated corporate SEA expenses (d)

 

 

 

 

 

 

 

 

(1.5

)

 

 

 

 

 

 

 

 

(1.6

)

Amortization of intangibles assets (e)

 

 

 

 

 

 

 

 

(7.5

)

 

 

 

 

 

 

 

 

(7.6

)

Operating income

 

 

 

 

 

 

 

 

28.1

 

 

 

 

 

 

 

 

 

1.3

 

Interest expense, net

 

 

 

 

 

 

 

 

(4.7

)

 

 

 

 

 

 

 

 

(6.9

)

Foreign currency transaction gain (loss), net

 

 

 

 

 

 

 

 

0.4

 

 

 

 

 

 

 

 

 

(0.6

)

Other non-operating (expense) income, net

 

 

 

 

 

 

 

 

(0.3

)

 

 

 

 

 

 

 

 

19.0

 

Income before income taxes

 

 

 

 

 

 

 

$

23.5

 

 

 

 

 

 

 

 

$

12.8

 

Reconciliation of gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

$

76.2

 

 

 

 

 

 

 

 

$

73.0

 

Segment operating expenses (f)

 

 

 

 

 

 

 

 

(39.1

)

 

 

 

 

 

 

 

 

(36.6

)

Unallocated corporate SEA expenses (d)

 

 

 

 

 

 

 

 

(1.5

)

 

 

 

 

 

 

 

 

(1.6

)

Goodwill impairment

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

 

(25.9

)

Amortization of intangibles assets (e)

 

 

 

 

 

 

 

 

(7.5

)

 

 

 

 

 

 

 

 

(7.6

)

Interest expense, net

 

 

 

 

 

 

 

 

(4.7

)

 

 

 

 

 

 

 

 

(6.9

)

Foreign currency transaction gain (loss), net

 

 

 

 

 

 

 

 

0.4

 

 

 

 

 

 

 

 

 

(0.6

)

Other non-operating (expense) income, net

 

 

 

 

 

 

 

 

(0.3

)

 

 

 

 

 

 

 

 

19.0

 

Income before income taxes

 

 

 

 

 

 

 

$

23.5

 

 

 

 

 

 

 

 

$

12.8

 

 

 

(a) Segment selling, engineering and administrative (SEA) expenses less research and development (R&D) primarily include information technology, professional services, facility-related expenses, payroll and benefits expenses directly incurred by the segments which are recorded in "Selling, engineering and administrative expenses" on the Condensed Consolidated Unaudited Statements of Operations.

(b) Research and development (R&D) expenses primarily include engineering-related costs to create new products and to make improvements to products currently in use. They are recorded in "Selling, engineering and administrative expenses" on the Condensed Consolidated Unaudited Statements of Operations.

(c) Indirect selling, engineering and administrative (SEA) expenses represent corporate costs and shared expenses allocated to businesses. They are recorded in "Selling, engineering and administrative expenses" on the Condensed Consolidated Unaudited Statement of Operations.

(d) Unallocated corporate expenses consist of corporate costs that are not allocated to the reportable segments because they are not included in the measure of segment operating income used by the chief operating decision maker to evaluate segment performance and allocate resources. They are recorded in "Selling, engineering and administrative expenses" on the Condensed Consolidated Unaudited Statement of Operations. During the three months ended October 3, 2026, unallocated corporate expenses were $1.5, primarily related to mergers and acquisitions planning activities. During the three months ended September 27, 2025, unallocated corporate expenses were $1.6, primarily related to the Divestiture and officer transition costs.

(e) Amortization of intangible assets includes those intangible assets resulting from the acquisition of new businesses.

(f) Segment operating expenses represent the aggregation of segment SEA expenses less R&D (a), R&D expenses (b), and indirect SEA expenses (c).

 

Segment SEA expenses, R&D expenses, and indirect SEA expenses, together with unallocated corporate SEA expenses, reconcile to "Selling, engineering and administrative expenses" in the Condensed Consolidated Statements of Operations, which totaled $40.6 and $38.2 for the three months ended October 3, 2026 and September 27, 2025, respectively.

The following table sets forth our segment information of sales, gross profit, significant segment expenses, and operating income from operations for the nine months ended October 3, 2026 and September 27, 2025:

 

 

 

Nine Months Ended October 3, 2026

 

 

Nine Months Ended September 27, 2025

 

 

 

Hydraulics

 

 

Electronics

 

 

Total

 

 

Hydraulics

 

 

Electronics

 

 

Total

 

Net sales

 

$

428.5

 

 

$

261.5

 

 

$

690.0

 

 

$

408.6

 

 

$

219.6

 

 

$

628.2

 

Cost of sales

 

 

(287.5

)

 

 

(171.2

)

 

 

 

 

 

(278.8

)

 

 

(149.1

)

 

 

 

Gross profit

 

 

141.0

 

 

 

90.3

 

 

 

231.3

 

 

 

129.8

 

 

 

70.5

 

 

 

200.3

 

Segment SEA expenses less R&D (a)

 

 

(43.8

)

 

 

(35.7

)

 

 

 

 

 

(46.8

)

 

 

(31.7

)

 

 

 

R&D expenses (b)

 

 

(7.2

)

 

 

(9.9

)

 

 

 

 

 

(6.5

)

 

 

(7.6

)

 

 

 

Goodwill impairment

 

 

—

 

 

 

—

 

 

 

 

 

 

—

 

 

 

(25.9

)

 

 

 

Indirect SEA expenses (c)

 

 

(13.1

)

 

 

(6.9

)

 

 

 

 

 

(9.8

)

 

 

(5.1

)

 

 

 

Segment operating income

 

 

76.9

 

 

 

37.8

 

 

 

114.7

 

 

 

66.7

 

 

 

0.2

 

 

 

66.9

 

Reconciliation of segment operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated corporate SEA expenses (d)

 

 

 

 

 

 

 

 

(1.6

)

 

 

 

 

 

 

 

 

(2.5

)

Amortization of intangibles assets (e)

 

 

 

 

 

 

 

 

(22.6

)

 

 

 

 

 

 

 

 

(24.1

)

Operating income

 

 

 

 

 

 

 

 

90.5

 

 

 

 

 

 

 

 

 

40.3

 

Interest expense, net

 

 

 

 

 

 

 

 

(14.5

)

 

 

 

 

 

 

 

 

(21.3

)

Foreign currency transaction gain (loss), net

 

 

 

 

 

 

 

 

0.9

 

 

 

 

 

 

 

 

 

(1.2

)

Other non-operating (expense) income, net

 

 

 

 

 

 

 

 

0.3

 

 

 

 

 

 

 

 

 

19.4

 

Income before income taxes

 

 

 

 

 

 

 

$

77.2

 

 

 

 

 

 

 

 

$

37.2

 

Reconciliation of gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

$

231.3

 

 

 

 

 

 

 

 

$

200.3

 

Segment operating expenses (f)

 

 

 

 

 

 

 

 

(116.6

)

 

 

 

 

 

 

 

 

(107.5

)

Unallocated corporate SEA expenses (d)

 

 

 

 

 

 

 

 

(1.6

)

 

 

 

 

 

 

 

 

(2.5

)

Goodwill impairment

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

 

(25.9

)

Amortization of intangibles assets (e)

 

 

 

 

 

 

 

 

(22.6

)

 

 

 

 

 

 

 

 

(24.1

)

Interest expense, net

 

 

 

 

 

 

 

 

(14.5

)

 

 

 

 

 

 

 

 

(21.3

)

Foreign currency transaction gain (loss), net

 

 

 

 

 

 

 

 

0.9

 

 

 

 

 

 

 

 

 

(1.2

)

Other non-operating (expense) income, net

 

 

 

 

 

 

 

 

0.3

 

 

 

 

 

 

 

 

 

19.4

 

Income before income taxes

 

 

 

 

 

 

 

$

77.2

 

 

 

 

 

 

 

 

$

37.2

 

 

(a) Segment selling, engineering and administrative (SEA) expenses less research and development (R&D) primarily include information technology, professional services, facility-related expenses, payroll and benefits expenses directly incurred by the segments which are recorded in "Selling, engineering and administrative expenses" on the Condensed Consolidated Unaudited Statements of Operations.

(b) Research and development (R&D) expenses primarily include engineering-related costs to create new products and to make improvements to products currently in use. They are recorded in "Selling, engineering and administrative expenses" on the Condensed Consolidated Unaudited Statements of Operations.

(c) Indirect selling, engineering and administrative (SEA) expenses represent corporate costs and shared expenses allocated to businesses. They are recorded in "Selling, engineering and administrative expenses" on the Condensed Consolidated Unaudited Statement of Operations.

(d) Unallocated corporate expenses consist of corporate costs that are not allocated to the reportable segments because they are not included in the measure of segment operating income used by the chief operating decision maker to evaluate segment performance and allocate resources. They are recorded in "Selling, engineering and administrative expenses" on the Condensed Consolidated Unaudited Statement of Operations. During the nine months ended October 3, 2026, unallocated corporate expenses were $1.6, primarily related to mergers and acquisitions planning activities. During the nine months ended September 27, 2025, unallocated corporate expenses were $2.5, primarily related to the Divestiture and officer transition costs.

(e) Amortization of intangible assets includes those intangible assets resulting from the acquisition of new businesses.

(f) Segment operating expenses represent the aggregation of segment SEA expenses less R&D (a), R&D expenses (b), and indirect SEA expenses (c).

Segment SEA expenses, R&D expenses, and indirect SEA expenses, together with unallocated corporate SEA expenses, reconcile to "Selling, engineering and administrative expenses" in the Condensed Consolidated Statements of Operations, which totaled $118.2 and $110.0 for the nine months ended October 3, 2026 and September 27, 2025, respectively.

 

The following table presents capital expenditures and depreciation and amortization by reportable segment for the three and nine months ended October 3, 2026 and September 27, 2025:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

October 3, 2026

 

 

September 27, 2025

 

 

October 3, 2026

 

 

September 27, 2025

 

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

Hydraulics

 

$

6.1

 

 

$

5.3

 

 

$

22.8

 

 

$

14.7

 

Electronics

 

 

1.4

 

 

 

1.4

 

 

 

2.7

 

 

 

3.5

 

Total

 

$

7.5

 

 

$

6.7

 

 

$

25.5

 

 

$

18.2

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

Hydraulics

 

$

5.6

 

 

$

5.7

 

 

$

16.3

 

 

$

16.4

 

Electronics

 

 

2.2

 

 

 

2.5

 

 

 

6.6

 

 

 

7.1

 

Corporate and other

 

 

7.6

 

 

 

7.7

 

 

 

22.7

 

 

 

24.3

 

Total

 

$

15.4

 

 

$

15.9

 

 

$

45.6

 

 

$

47.8

 

The following table presents total assets by reportable segment as of October 3, 2026 and January 3, 2026:

 

 

 

October 3, 2026

 

 

January 3, 2026

 

Total assets

 

 

 

 

 

 

Hydraulics

 

$

958.2

 

 

$

965.8

 

Electronics

 

 

547.0

 

 

 

538.2

 

Corporate and other

 

 

9.0

 

 

 

10.5

 

Total

 

$

1,514.2

 

 

$

1,514.5

 

Schedule of geographic region information Tangible long-lived assets are shown based on the physical location of the assets and primarily include net property, plant and equipment and exclude right of use assets. The following table presents financial information by region:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

October 3, 2026

 

 

September 27, 2025

 

 

October 3, 2026

 

 

September 27, 2025

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

125.9

 

 

$

114.2

 

 

$

374.9

 

 

$

328.8

 

EMEA

 

 

54.1

 

 

 

51.0

 

 

 

172.8

 

 

 

149.5

 

APAC

 

 

49.7

 

 

 

55.1

 

 

 

142.3

 

 

 

149.9

 

Total

 

$

229.7

 

 

$

220.3

 

 

$

690.0

 

 

$

628.2

 

 

 

 

 

October 3, 2026

 

 

January 3, 2026

 

Tangible long-lived assets

 

 

 

 

 

 

Americas

 

$

127.5

 

 

$

133.1

 

EMEA

 

 

49.3

 

 

 

42.4

 

APAC

 

 

14.4

 

 

 

13.5

 

Total

 

$

191.2

 

 

$

189.0